European countries locked in a diplomatic row with Libya should remember that their energy firms have interests in the north African country, Libya's top energy official said in an interview.

Libya has stopped issuing entry visas to citizens of most European countries in retaliation for Switzerland barring entry to senior Libyans including leader Muammar Gaddafi and members of his family.

"We hope this crisis will be resolved," Shokri Ghanem, the head of Libya's state energy firm NOC and the country's OPEC representative, said in an interview late on Sunday.

"Regarding the oil sector, we think European companies have many interests in Libya and these countries should know their interests," Mr Ghanem said.

"They should also think of these interests and investments in energy because good relations with Libya would help European companies run their businesses in Libya easily," he said.

European energy firms with investments in Libya, home to Africa's largest proven oil reserves, include BP, Italy's ENI and Spain's Repsol.

Mr Ghanem had previously warned that the business interests of US firms could be damaged over the diplomatic row, but he has not before made any public mention of repercussions for European companies.

He issued the warning to US firms including ConocoPhillips and Exxon Mobil after a US official made an acerbic comment about a speech in which Colonel Gaddafi called for a "jihad" against Switzerland.

However, that dispute appears to have been resolved after the US official apologised for his remarks and the apology was accepted by Tripoli.

Libya's long-running spat with Switzerland - which is at the heart of the dispute with European countries - began in July 2008 when police in Geneva arrested one of Col Gaddafi's sons at a luxury lakeside hotel.

The charges, of mistreating two domestic employees, were later dropped but the arrest of Hannibal Gaddafi angered Libya, which halted oil exports to Switzerland and withdrew deposits from Swiss banks in protest.

Libya viewed the arrest of Hannibal and his wife as a deliberate humiliation given his status as a top diplomat. Relations worsened further when a Swiss paper carried a leaked police photo of Hannibal taken during his arrest.

Libya declared a trade and economic embargo on Switzerland this month after Col Gaddafi called for a "jihad" against the neutral alpine country.

The dispute has clouded a steady improvement in Libya's ties with its northern neighbours since it emerged from years of sanctions in 2003 and began cooperating on security and illegal migration.

It has also been uncomfortable for European countries that have struck up friendly ties with Col Gaddafi and hope to win lucrative business deals as Libya rebuilds infrastructure damaged by the economic embargo.

Italy, which has close business links with Libya, has accused Switzerland of misusing the Schengen agreement and taking its members "hostage" with the ban, which had forced other European states to bar travel by Libyans as well.

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