Libya and US-based Honeywell have agreed to a deal for the South Refinery. The proposed South Refinery project, which is expected to cost between $500 million and $600 million, will require engineering work, according to a subsidiary of Libya’s state-owned National Oil Corp (NOC).
Zallaf For Oil And Gas Co, a subsidiary of NOC, stated in a statement that the project would be completed in two stages but did not provide a timeline for the construction.
As earlier stated by NOC, South Refinery will produce jet fuel, cooking gas, and other goods in addition to 1.4 million litres of gasoline and 1.1 million litres of diesel per day.
After two and a half years of relative calm following years of conflict, Libya is attempting to attract foreign investment back into its energy sector.
In light of supply concerns in Europe brought on by the conflict in Ukraine, it expects to benefit from increased demand for its oil and gas.
The Tripoli-based administration decided last month to work with Italian energy company Eni on an offshore gas project.
Despite a plan for national elections, the political climate is still shaky, and even after the ceasefire that ended the most recent major conflict in October 2020, armed groups have repeatedly stopped production.
