Oil and gas exploration company Zallaf Libya Oil and Gas – a subsidiary of Libya’s state-owned National Oil Corporation (NOC) – awarded a contract to multinational refinery manufacturing company Honeywell Universal Oil Products (UOP) for the construction of the South Refinery in the town of Ubari in Libya.
Announced by the NOC on 26 March, the refinery project will be developed in two phases at an estimated cost of between $500 million and $600 million. Honeywell UOP will be responsible for the initial engineering works for the refining units.
“This step comes among other steps within the new vision adopted by the NOC, and the promise made by the Chairman of the Board of Directors of NOC to expediate the establishment of the South Refinery and assist in the development of the south region,” Zallaf Libya Oil and Gas indicated in a press statement.
The first phase will involve the Front-End Engineering Design of the project and will be conducted following the completion of the concept and feasibility studies. Meanwhile, Zallaf Libya Oil and Gas will sign another contract with a potential firm to undertake installation works and final trials for the second phase of the project. Honeywell UOP will supervise the installation process.
Situated approximately 6km from the Ubari power station, the South Refinery will be equipped to process approximately 30,000 barrels per day of crude oil to produce cooking gas, jet fuel, diesel, liquefied petroleum gas, power generation fuel, and asphalt.
The South Refinery is expected to start commissioning 36 months following the signing of the contract.
Development of the South Refinery comes as part of the Libyan Government and NOC’s efforts to bring foreign investment back into the North African country. Zallaf Libya Oil and Gas Chairman, Hussein Ali Abuslayana indicated during the announcement that the project is intended to alleviate poverty, provide fuel, and assist socioeconomic development in Libya’s southern region.
Meanwhile, Chairman of the NOC, Farhat Bengdara, highlighted the National Oil Company’s desire for Libya to attain self-sufficiency in fuel production while promoting prosperity and development in the region.