The rebels took Ras Lanuf on Friday but pro-Gaddafi forces are pushing them back Forces loyal to Libyan leader Col Muammar Gaddafi have launched further air strikes on the rebel-held oil port of Ras Lanuf, in a renewed offensive.
Warplanes dropped missiles on residential areas and near rebel positions in the desert, witnesses said. There were no immediate reports of casualties.
Meanwhile, a rebel spokesman said a representative for Col Gaddafi had offered to hold talks on his exit.
The rebels rejected the offer, the spokesman said.
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Opposition sources in Benghazi have told the BBC that approaches were made by officials close to Colonel Gaddafi about allowing him to stand down and have safe passage through the country.
According to one reliable source close to the opposition leadership, the approaches were made first by Gaddafi's loyalists here in Benghazi and then by an official, also close to Colonel Gaddafi, calling from Tripoli.
The idea was for the people's assembly to be reconvened and, under that, to allow Colonel Gaddafi to stand down and leave the country with safe passage for him and his family.
No formal approach was made and no formal response was made back from the interim national council which represents the opposition.
However, opposition figures have made it very clear they are not interested in any deal and in any discussions until there is a ceasefire and Colonel Gaddafi stands down.
Opposition figures have said they believe this is just an attempt to divide the opposition. They don't believe it is a serious offer by Colonel Gaddafi.
Analysis
According to one reliable source close to the opposition leadership, the approaches were made first by Gaddafi's loyalists here in Benghazi and then by an official, also close to Colonel Gaddafi, calling from Tripoli.
The idea was for the people's assembly to be reconvened and, under that, to allow Colonel Gaddafi to stand down and leave the country with safe passage for him and his family.
No formal approach was made and no formal response was made back from the interim national council which represents the opposition.
However, opposition figures have made it very clear they are not interested in any deal and in any discussions until there is a ceasefire and Colonel Gaddafi stands down.
Opposition figures have said they believe this is just an attempt to divide the opposition. They don't believe it is a serious offer by Colonel Gaddafi.
A member of the rebel Transitional National Council, Jalal al-Gallal, told the BBC: "To leave is one thing, but not to be prosecuted at a further date is not acceptable."
'Significant gains' There has been no comment from Col Gaddafi's government on the rebels' statement, but the Libyan leader has refused to cede power in the past.He argues that he has no official position, and therefore it is impossible for him to resign.
The BBC's Wyre Davies, in Tripoli, says Col Gaddafi's side believe they are making significant military gains, consolidating their hold on western Libya.
On Monday, pro-Gaddafi forces retook the town of Bin Jawad, on the road to Ras Lanuf, which the rebels captured on Friday.
Using air strikes, helicopter gunships and heavy armaments, they pushed back a rebel advance along the north coast.
Under these circumstances, it is difficult to see how the Gaddafi regime would be in any mood to compromise or talk about succession, our correspondent says.
Meanwhile, Western powers are stepping up their efforts to put in place a no-fly zone over Libya.
Britain and France are drafting a UN resolution, which will be debated by Nato defence ministers on Thursday.
A no-fly zone would probably ban military flights by government forces through Libyan airspace. Any aircraft violating the exclusion zone would risk being shot down by international forces.
No-fly zones were imposed on southern and northern Iraq in the wake of the first Gulf war in 1991, and during the war in Bosnia in 1994-95.
Gulf states have supported the idea of a no-fly zone and also called for an urgent meeting of the Arab League.
They have condemned the use of violence against civilians by Libyan government forces.
However, our correspondent in Tripoli cautions that any foreign intervention would have to be carefully calculated, as it risks playing into Col Gaddafi's hands.
Heavy toll The UN says more than 1,000 people have died and 200,000 have fled the violence in Libya, which is now in its third week.
Anti-Gaddafi rebels control most of the east of the country, centred around the city of Benghazi. However, the government has consolidated its hold on western areas and the capital, Tripoli, which is home to about a third of the population of 6.5 million.
The revolt against Col Gaddafi's 41-year rule is now well into its third week.
It comes in the wake of uprisings in Tunisia and Egypt, whose presidents were forced from power after mass street demonstrations. Anti-government protests have also taken place in Bahrain, Yemen, Algeria and Jordan.
http://www.bbc.co.uk/news/world-africa-12673956n
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