Lash made the announcement after a two-day visit to Libya to discuss trade and other ties. He also acknowledged discussions had taken place on the Libyan purchase of Boeing aircraft.

'The export of Libyan oil to the US has started and there is no obstacle in this field,' Lash said, while a Libyan petroleum source said the exports had commenced last month.

Lash met with several senior Libyan officials including Energy Minister Fathi bin Shatwan, Tourism Minister Ammar Altaef and Libyan Arab Airlines chairman Hassan Dabnoun. On selling Boeing aircraft to Libya, Lash said: 'Measures are being studied for the sale of such planes'.

Libya has improved foreign relations since renouncing its weapons of mass destruction programs in December 2003 and agreeing to pay compensation for the 1988 bombing of Lockerbie.

Libya, an OPEC member, is currently negotiating deals with Western oil firms aimed at boosting production capacity from its current level of about 1.7 million barrels a day.