Blair, ‘blood money’ and a Lockerbie deal: Talks with Gaddafi hours before BP agreement

Tony Blair has been accused of agreeing a ‘blood money’ deal involving the Lockerbie bomber with Colonel Gaddafi just hours before BP unveiled a 500million oil contract.

The then Prime Minister laid the foundations for the release of Abdelbaset Ali Mohmed Al Megrahi during a meeting with the Libyan leader in a desert tent two years ago.

The pair thrashed out a controversial prisoner transfer deal just before BP chairman Peter Sutherland announced the firm was investing $900million - about 545million - to search for oil in Libya. If the firm strikes rich, it could be worth 13billion.

The Scottish Government confirmed that its justice secretary Kenny MacAskill would announce Megrahi’s fate at 1pm today.