The agreement was concluded on 17 December during talks between Spanish Prime Minister Jose Luis Rodriguez Zapatero and Libyan leader Muammar Gaddafi in Madrid. Gaddafi was on his first visit to Spain.

According to an official statement from Zapatero’s office, the deal could result in Spanish companies investing $5bn in Libya’s energy sector, €2bn ($2.9bn) in defence and aeronautics and $10bn in infrastructure development.

Gaddafi’s trip to Spain follows his visit to France a week earlier.