Libya, UAE firms sign $2.5bn refinery deal
Tripoli, July 14, 2008
Libya's National Oil Corporation (NOC) said on Monday it has signed a deal worth $2.5 billion with UAE firms to upgrade a Libyan oil refinery.
The Star Consortium of TransAsia Gas International and Star Petro Energy signed the 50-50 joint venture agreement with NOC in Tripoli covering a two-stage improvement of the 220,000-barrel per day Ras Lanuf export refinery, NOC added.
TransAsia Gas International and Star Petro Energy are both affiliates of the Ghurair group controlled by the Al Ghurair family.
The deal followed a memorandum of understanding on January 7 between the two sides, NOC said.
NOC officials forecast the upgrades would start on September this year and take three years to complete.
The site at Ras Lanuf includes a refining plant that produces naphtha, kerosene, light gas oil and heavy gas oil, and other units producing ethylene and polyethylene, according to its Web site.
The refinery upgrade will take place in two stages, the first to refurbish the existing plant to increase capacity and improve the ability to market the products, NOC officials have said.
In the second stage the companies will expand the refinery and add the latest technology for converting fuel oil into high-value products, improve efficiency and bring overall quality in line with international standards. - Reuters