Libya could soon join Nigeria to supply crude oil to Ghana on a concessionary term.

The deal was struck between the two leaders, President Atta Mills and Muammar al-Qadafi of Libya, on the sidelines of the 13th Ordinary Summit of the African Union in Libya, after the government expressed seriousness about the need for assistance to accessing crude oil on good terms.

The Presidential Spokesman, Mahama Ayariga, told Joy News the government hoped Libya could help Ghana to meet her daily oil demand of about 65,000 barrels. "Qadafi has indicated his commitment to assist (Ghana with oil). It is now the question of the technical team working through the details of the deal, and then the two countries will seal it, afterwards we will see the fruits of the discussion."

When the deal comes to fruition, it would be the second successful deal struck in the county's energy sector.

President John Evans Atta Mills, last month, secured an assurance from the Government of Nigeria that it would supply crude oil to Ghana on friendly terms.

Under the arrangement, Nigeria pledged to supply Ghana between 60,000 and 65,000 barrels of crude oil daily, with 90 days credit.

The Nigerian government also pledged to ensure the regular supply of gas to help improve Ghana's energy needs.

Last year, a similar deal with the Nigerian government saw the latter raise its crude oil supplies to Ghana by 50 percent to 60,000 barrels per day.

Libya, a member of the Organisation of Petroleum Exporting Countries (OPEC), holds the largest proven oil reserves in Africa.

According to the 2008 BP Statistical Energy Survey, Libya had proven oil reserves of 41.464 billion barrels at the end of 2007, or 3.34 % of the world's reserves.

Oil exploration in Libya began in 1955, with the key national Petroleum Law No. 25 enacted in April of that year (a new petroleum law is currently under development). Libya's first oil fields were discovered in 1959, (at Amal and Zelten - now known as Nasser), and oil exports began in 1961.

Libya is Africa's major oil producer and one of Europe's biggest North African oil suppliers. Supplies from North Africa to Europe destinations have the advantage of being both timely and cost effective.

According to the 2008 BP Statistical Energy Survey, Libya produced an average of 1847.7 thousand barrels of crude oil per day in 2007, 2.2% of the world total, and a change of 0.5 % compared to 2006.

Libya's economy is based on oil and exports contribute between 75% and 90% of State revenues.