Libyan government to exclude Turkish firms from contracts

BENGHAZI, Libya (Reuters) - Libya's internationally recognized government plans to exclude Turkish companies from contracts, a cabinet statement said, effectively banning them from the oil producer.

The government of Prime Minister Abdullah al-Thinni gave no reason for the move but has in the past accused Turkey of receiving officials from a rival government controlling western Libya.

Thinni and the allied elected parliament have been confined to a rump state in the east since an armed group called Libya Dawn seized the capital Tripoli, reinstated a previous assembly and set up a rival administration.

"The council of ministers ... decided to review all contracts with foreign companies in all areas and exclude Turkish firms from operating in Libya," the statement posted late on Sunday on the cabinet website said.

A Turkish official said the government was evaluating the situation in the north African state, where Turkish businesses have traditionally had a strong presence.

(Reporting by Ayman al-Warfalli and Ulf Laessing in Benghazi. Additional reporting by Jonny Hogg in Ankara)