The US-based Occidental Petroleum Corporation says Libya has given it permission to resume operations there for the first time in 19 years.
Occidental says it will be the first US oil company to resume operations
The company was forced to abandon production in Libya in the mid-1980s, because of sanctions against Tripoli imposed by the US government.
Its facilities were taken over by the Libyan state oil company.
The US eased economic sanctions against Libya in 2004, opening the door for oil companies to return.
Occidental is taking over operations from wells that have been producing 12,000-15,000 barrels of oil a day.
The company was among a number of US oil producers to win exploration rights in Libya earlier this year.
US President Ronald Reagan expanded sanctions against Libya in 1986, barring US companies from doing business there and lifting special exemptions for oil companies, in response to accusations that the Libyan government was involved in promoting terrorism.