Libya signs South Refinery contract with Honeywell

A subsidiary of Libya's state-owned National Oil Corp (NOC) said on Sunday, 26 March, it had signed a contract with US-based Honeywell for engineering work on the planned South Refinery project, likely to cost between $500m and $600m.

Source: Kawin Samerphark © 123RF.com

NOC subsidiary Zallaf for Oil and Gas Co said in a statement the project would be carried out in two phases but did not issue a schedule for works.

NOC has previously said South Refinery will produce cooking gas, jet fuel and other products, including 1.4 million litres a day of petrol and 1.1 million litres a day of diesel.

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Attracting foreign investment

Libya is seeking to bring foreign investment back into its energy sector after two and a half years of comparative peace following years of conflict.

It hopes to take advantage of increased demand for its oil and gas in the wake of supply concerns in Europe resulting from the war in Ukraine.

Last month, the Tripoli-based government agreed to move ahead with an offshore gas project in cooperation with Italy's Eni.

However, the political situation remains friable despite a plan for national elections, and even since the October 2020 ceasefire that ended the last big bout of fighting, armed factions have repeatedly shut down production.