By Lin Noueihed
LONDON, March 6 (Reuters) - Oil and gas major BP saidit had mothballed plans to explore in Libya's Ghadames basinbecause of security concerns, the latest in a series ofcompanies to rethink their projects amid growing instability.
Three years of turmoil since the Arab Spring and toughcontract terms have prompted oil firms to reassess their role inLibya, and several have said they would postpone their plans orscrap them altogether.
BP's exploration and production sharing agreement with Libyacovers onshore acreage in Ghadames, near the border betweenLibya, Algeria and Tunisia, and offshore acreage in the centralSirte basin.
"With respect to the onshore exploration drilling programme,a security review in June concluded that this could not besafely and securely delivered by BP at this time. Alternativeapproaches are being considered," BP said on Thursday in itsannual report.
The British company was continuing with its offshore plans,where safety risks are much lower.
"Preparation work towards our offshore exploration drillingprogramme is continuing," it said.
BP signed the agreement with Libya in 2007, when it was seenas a landmark deal that sealed former dictator Muammar Gaddafi'sreturn to the international fold after years of sanctions.
BP is still at the exploration stage and does not produceoil in Libya. Its assets there were worth $472 million at theend of 2013, according to its annual report.
Since Gaddafi's overthrow in 2011, instability in Libya hasbeen rising, with attacks on foreigners becoming increasinglyfrequent. A mix of disgruntled workers, separatists and militiashave blocked much of its oil exports for months at a time.
In September, Exxon Mobil, the world's largestpublicly traded energy firm, said it would cut its staff andoperations in Libya due to growing insecurity.
Royal Dutch Shell abandoned exploration on two blocks in2012 due to disappointing results.
Last year Marathon Oil attempted to sell its stakein one of Libya's top oil ventures, but Libya blocked the deal.
BP was one of several oil companies that scrambled to returnto Libya after 2003. In bidding rounds opening up territory thathad been off limits for years, companies accepted some of theindustry's tightest exploration and production terms.