President Reagan is expected to permit five...

President Reagan is expected to permit five American oil companies to resume operations in Libya, where they have been barred by U.S. sanctions since 1986, Newsweek reported Sunday. Newsweek said the five--Occidental, Conoco, Marathon, W. R. Grace and Amerada Hess--face confiscation of their 49% stake in the Libyan national oil company by June if the sanctions are not dropped. The report, quoting an unidentified U.S. official, provided no timetable for the resumption of operations. U.S.-Libyan relations worsened last week when jets shot down two Libyan MiGs over the Mediterranean.