NTC 'promised France a third of the oil'

Liberation said a letter from the National Transitional Council (NTC) dated April 3 informed the emir, a major financial backer of the rebels' Nato-backed regime change operation, of a deal "to assign 35 per cent of crude oil to France in exchange for its total and permanent support of our council."

The report emerged as Paris prepared to host a meeting of world leaders and senior officials to win recognition for the NTC and its interim rule in Libya.

The "Friends of Libya" conference was co-hosted by French President Nicolas Sarkozy and British Prime Minister David Cameron and attended by officials from 60 countries.

At the time the Star went to press it was unclear what had been discussed, but the meeting was widely expected to declare the end of the conflict in Libya.

Meanwhile European Union foreign policy chief Catherine Ashton announced that Brussels was lifting its sanctions on Libyan ports, banks and energy firms.

Officials said the decision covered six port authorities, more than a dozen companies in the oil and gas sector, several banks and financial institutions and the national airline company.

The decision will go into effect after it is published in the bloc's official gazette today.

A number of EU member states have recognised the NTC as the legitimate government. In May the EU extended de facto recognition by opening a diplomatic office in Benghazi.

On August 29 the Italian oil giant ENI signed its own deal with the NTC to restart its oil production in Libya and reopen a major gas pipeline running from Libya's oil fields under the Mediterranean to Italy.

Saif al-Islam Gadaffi said in a telephone message on Wednesday night that "20,000 armed youth" are prepared to defend Sirte and that tribal forces in the area had vowed to go ahead "with the struggle and resistance until victory."