The European Union is lifting sanctions on Libya's National Oil Corp. and partially lifting an asset freeze on other entities, including the country's central bank, it said Friday.

The moves follow the fall of Col. Moammar Gadhafi and ends a key hurdle to the meaningful return of the country's oil exports to European consumers.

In its official journal, the EU said it was striking NOC and state-controlled oil-field and port operator Zueitina Oil Co. from a list of entities European companies were barred to have transactions with.

Until now, European companies were generally barred from buying lift crude from Libya . The only exception was Arabian Gulf Oil Co., or Agoco, an eastern oil company long controlled by the rebels which restarted production this month.

That created a legal conundrum for foreign companies, such as Total SA (TOT), which are about to restart exports and would be expected to get an entitlement on their production through NOC.

The EU's move will also ease access to overdues from cargoes that were loaded by European companies but not paid after sanctions kicked in.

Though the end of the sanctions had been expected, its timing was unknown.

A virtual shutdown of Libyan oil exports after civil war erupted in Libya in February led to higher prices in Europe --its main customer--forcing Saudi Arabia to boost its supply and consumers to draw into their emergency stockpiles. While a fraction of Libyan output has been restored, analysts think a full recovery of Libyan output could be two or more years away.

In a separate announcement, the EU lifted restrictions on four other entities including the central bank of Libya and the Libyan Investment Authority, also following a decision by the United Nations.

The move means that assets previously frozen will remain so, but new activities are unrestricted.

According to a diplomatic official familiar with the situation, it is estimated that the central bank and investment fund represent about $150 billion of assets, only a third of which is in cash or other liquid assets. The rest of which are in "complicated instruments, investments and arrangements" around the world.

The fund was set up in 2006 to manage the country's oil wealth and holds stake in Italian bank UniCredit SpA (UCG.MI), German industrial conglomerate Siemens AG (SI), as well as Italian soccer club Juventus.

"They remain frozen, but the fund can start new activities," the official said, addings that its holdings are "huge."

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