LIBYA - July 25 - French Deals Boost Libya's Hopes Of Co-Operation.

Libya takes another big step towards reintegrating itself back into the international community after it signed a series of wide-ranging co-operation agreements with France in areas that included defence, health, education and civilian nuclear power. The agreements were signed during Nicolas Sarkozy's visit to the country and came just one day after the French president vowed to help Libya return to the "concert of nations" as a reward for the release of five Bulgarian nurses and a Palestinian doctor. Libya is hoping for increased co-operation with Europe and the US after it released the six medical workers, who were imprisoned for more than eight years on charges they deliberately infected children with HIV. The agreements are a coup for Sarkozy, who had made no secret of his desire to strengthen France's influence in the oil and gas rich country, especially as Europe and Washington look to step up their diplomatic presence in the country. Libya, a country of 5.5m people, is Africa's third biggest producer of oil. Its 39bn barrels in proven oil reserves are also considered to be Africa's largest. Interest in the country was further underscored after Condoleezza Rice, the US secretary of state, said that she hoped to travel to Libya soon. "I know that American companies are very interested in working in Libya", Ms Rice was quoted by Reuters as saying. Although a spokesman for Sarkozy said none of the agreements signed Wednesday night were commercial in nature, it is understood that they would help further French business interest in the country. In addition to oil, France has ambitions in the nuclear sector and July 25 agreement on civilian nuclear energy is expected to pave the way to participation by French companies. "The objective is to co-operate so as to work on the installation in Libya of a nuclear reactor to supply drinking water from desalinated sea water", explained an aide to Sarkozy. Areva, one of the world's biggest maker of nuclear reactors, is likely to be the main beneficiary of this agreement. The company told the FT it had been approached with a view to building nuclear plants, but added that talks, which started last year, were at a preliminary stage. Alstom, the French engineering group which makes high-speed trains and energy turbines, could also benefit from closer Franco-Libyan ties. Meanwhile, in the banking sector, BNP Paribas, France's largest bank, won a tender for the privatisation of 19% of the capital of the Sahara Bank at a cost of 145m ($200m, [pounds sterling]97m).