US companies forced to withdraw from Libyan oil interests in 1986, when sanctions were first imposed, are expected to return to the country. The easing of later sanctions, imposed in 1996, will make it easier for non-US companies to invest in Libya. In the absence of US companies, Italian, French, and German firms came to dominate oil investment in Libya. But their activities were hampered by the 1996 US sanctions regime, which threatened sanctions in the United States against non-US companies making investments of $20 million or more over a 12-month period in Libyas oil and gas sector. A visiting US oil executive said discussions were currently underway between Libya and US companies present in the country before 1986 – Amerada Hess, Conoco, Marathon, and Occidental – and that contacts had also been established between Tripoli and potential newcomers. Libyan energy minister Fathi Omar Bin Shatwan said recently that potential oil reserves could exceed 100 billion barrels, compared to the 36 billion barrels of currently proven reserves. Libya is seeking to increase maximum oil production capacity from 1.7 million barrels per day (bpd) to 3 million bpd over a period of seven to 10 years. Shatwan estimated that approximately $30 billion would be needed to develop the oil sector upstream (exploration, production) and downstream (refining, export terminals, and marketing) over this period. Despite efforts to diversify its economy, Libya remains dependent on oil, which accounts for 94 percent of exports, 60 percent of government income, and 30 percent of its $34 billion gross domestic product PIN//Mathaba