Berlin - Germany's economics minister announced plans Sunday to develop economic and energy ties with Libya, during a weekend visit to the north African state accompanied by a delegation of 100 business leaders. Talks focused on energy policy and infrastructure projects, the German economics ministry said.

"Libya is our largest oil supplier outside of Europe and also has large gas reserves," Karl-Theodor zu Guttenberg told the Sunday edition of German daily Bild.

"We need to diversify our energy supply and must not make ourselves dependent on individual countries," Guttenberg said, in reference to an energy row between Russia and Ukraine that threatened European supplies at the start of the year.

Libya has recently emerged as a potential international diplomatic and trading partner, after years of isolation from western states.

Guttenberg cautiously praised the controversial Libyan leader Moamer Gaddafi. "Gadaffi remains an enigmatic character, but he is taking increased responsibility, for example as the head of the African Union," Guttenberg said.

"Some now see in him a partner in the fight on international terror," the German economics minister added.

It remained unconfirmed whether Guttenberg would personally meet the Libyan leader during his trip.(dpa)