Libya, United Arab Emirates to Jointly Expand Libyan Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--Libya's National Oil Corporation (NOC) signed a contract in Tripoli on January 7, 2008, with the Star Group from the United Arab Emirates to equally invest $2 billion in expanding the Ras Lanuf refinery, 900 kilometers east of the country's capital.

With a production capacity of 1.8 million barrels per day of crude oil, Libya is Africa's second-largest oil-producing country. However, its oil refining capacity is limited, so the country is aggressively building and renovating refineries.

The project is estimated to be complete in five years and will be carried out in two stages. In the project's first phase, the refinery will be refurbished to increase production capacity and to improve the competitiveness of its products. In the second phase, new oil refining facilities will be added to the plant, and latest technologies will be adopted for converting fuel oil to high value added products, bringing the refinery to international standards. Upon the expansion project's completion, the Ras Lanuf refinery will be able to process 220,000 barrels of oil every day.

Star Group was chosen for the Ras Lanuf refinery expansion project through a competitive bidding process. Dow Chemical already held a contract with NOC to operate and expand the petrochemical facilities at Ras Lanuf earlier.

It was also reported that a consortium consisting of five large Japanese companies held discussions with Libya in December 2007 regarding the possibility of building a 200,000-barrel-per-day refinery along the coast near Tripoli. The whole project will cost $3.6 billion to $4.5 billion. The refinery's products will be mainly exported to Europe and also used to ensure Japan's needs for petroleum products.

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