Following years of sanctions Libya has only recently been embraced by the western world after renouncing weapons of mass destruction and reaching a settlement with families of those killed in the Lockerbie air disaster.

Since then there has been a stampede for the country’s proven oil reserves of 29.5 billion barrels and 46.4 trillion cubic feet of gas.

Woodside managed to get the jump on the rest of the world last year when, in partnership with Spanish group Repsol and Hellenic Petroleum of Greece, it secured an exploration and production agreement worth around $146 million with the Libyan National Oil Corp.

Now Foreign Minister Alexander Downer will lead a small group of Australian oil executives, including Santos managing director, John Ellice-Flint, and Woodside director of new ventures, Agu Kantsler, in discussions with Libyan officials this week to increase the Aussie influence.

Australia has already established a presence on the African continent with Woodside, Roc Oil and Hardman preparing to develop the massive Mauritanian oil and gas fields, while a number of companies are studying ground from Kenya and Tanzania on the east coast to Angola and Sierra Leone on the west coast.

However, there is increasing competition from US interests as the developed nations increase their search for alternative fuel sources to the turbulent Middle East.