DMEA: Deal signed for Libyan refinery project

A subsidiary of Libya’s state-owned National Oil Corp. (NOC) has announced the signing of a contract with US based Honeywell for the development of a new refinery near the El Sharara oilfield.

Zallaf for Oil and Gas Co. said it had agreed a $500-600mn deal covering front-end engineering and design (FEED) and related services for the South Refinery project, located in the Awbari area.

According to NOC, the facility is expected to proceed 30,000 barrels per day (bpd) of crude to yield gasoline, diesel, jet fuel, cooking gas and other associated products.

Zallaf chairman Hussein Ali Abuslayana told the Libya Herald that the project will be split into two phases – feasibility and FEED, and installation and testing. Honeywell is to execute the first phase and oversee work on the second. UK-based Petrofac previously carried out a feasibility study, which it updated in 2020.

Meanwhile, NOC head Farhat Bengdara was quoted by local media as saying that the facility’s construction would last around 36 months.