It's here in this giant terrain -- three times the size of Texas -- that Hunt Oil and BP (BP) made fortunes before Qaddafi nationalized their concessions in the 1970s. U.S. sanctions forced American oil majors out in 1986 in retaliation for Qaddafi's involvement in terrorist activities; UN sanctions came in 1992, after the Libyan-sponsored bombing of a Pan Am jetliner in 1988. By late 2004, U.S. companies returned -- a reward for Qaddafi's abandoning weapons of mass destruction and compensating Lockerbie victims. For both sides there were fresh fortunes to be made. Marathon Oil (MRO), Occidental Petroleum (OXY), ConocoPhillips (COP), and others resumed operation, while Total (TOT), ENI (E), Respol, and other European companies continued their multibillion-dollar contracts. All elbowed for new deals, ignoring Qaddafi's dictatorship and focusing instead on his son Saif's grand reform promises.
When I first met Saif in Tripoli in late 2004, U.S. and European business representatives raced around the city trying to meet this London-educated would-be heir apparent. By my second visit in early 2010, Saif held huge sway over decisions about business, and a large U.S. business delegation was again in town. Notwithstanding this year's grueling NATO campaign, the West's courtship paid off. Two days before the revolt erupted, a J.W. Marriott (MAR) tower opened along Tripoli's picturesque seafront. Nearby is a new Four Points Sheraton, complete with a marina; outside, the Qaddafis' armored BMW and Mercedes-Benz sedans sit parked, abandoned during their flight from Tripoli. Cranes loom over Tripoli's splashy half-built shopping malls, apartment complexes, and even a new People's Congress Hall -- a symbol of Qaddafi's regime -- designed by famed architect Zaha Hadid. "A small group got richer and richer, while the rest of us watched," says Sami Zaptia, CEO of the Tripoli business consultancy knowlibya.net.
Ali Tarhouni was no friend of the regime. Originally from Benghazi, he was expelled from college for political activism and fled to the U.S. in 1973, at age 22. In retaliation, Qaddafi stripped him of his citizenship and sentenced him to death. Tarhouni earned a doctorate in economics from Michigan State University, settled in Seattle, and had four children, becoming a senior lecturer at UW's Foster School of Business.