Libya’s government has threatened to base decisions on future oil deals on how nations react to the uprising seeking to oust Muammar Gaddafi.

The head of Libya’s national oil company says the country is honouring all its commitments and trying to recover from a huge drop in production due to a rebel uprising against ruler Muammar Gaddafi.

Libya today threatened to withhold additional compensation promised to the families of those killed in the Lockerbie bombing unless the United States offered a prompt reward for Tripoli’s decision to abandon its secret weapons programmes.