ERG Interested In Rebels' Libyan Oil If Rules Clear

ERG SpA (ERG.MI) is interesting in buying oil again from Libya , including crude sold by the rebels fighting Col. Moammar Gadhafi, as long as it does so under clear rules, said the chief executive in an interview Thursday.

"We are interested in buying again Libyan oil" including from the rebels' provisional government, Alessandro Garrone, the CEO of Italy's biggest independent refinery by capacity, told Dow Jones Newswires on the sidelines of a conference in Rome.

"But we want to operate under clear and transparent rules," said Garrone, adding this still isn't the case at the moment.

ERG previously bought about 10% of its oil needs from Libya , but since the armed rebellion has replaced it mainly with Russian crude, said Garrone.

Wednesday, an oil tanker departed from a northeastern port in Libya carrying one million barrels of oil, marking the first sale of crude by Gadhafi's opponents in the North African country as they seek funds to defeat his forces. The U.S. backs the sale of oil by Libya 's rebels, said Energy Secretary Steven Chu Thursday.

Separately, ERG is still waiting for all the permits to be approved for the liquefied natural gas facility project in Sicily , which is an equally owned venture with Royal Dutch Shell PLC (RDSB.LN), said Garrone. The project has an annual capacity of eight billion cubic meters.

"When we have all the permits we will then decide if and when to proceed with the investments," said ERG's CEO.

Garrone said the nuclear crisis in Japan has made LNG more attractive.

Energy experts say LNG demand may rise in the long-term should countries reassess their dependence on nuclear power and seek alternative energy sources.