Libya assigns the US “Honeywell” the construction of an oil refinery for $600 million

A subsidiary of the Libyan National Oil Corporation said today, Sunday, that it has signed a contract with the American company Honeywell for engineering works for an oil refinery project in the south of the country, which is likely to cost between 500 and 600 million dollars.

The Zallaf Libya Oil and Gas Company, affiliated to the National Oil Corporation, said in a statement that the project would be implemented in two phases, but did not announce a timetable for the works.

The National Oil Corporation said earlier that the South Refinery will produce cooking gas, jet fuel and other products, including 1.4 million liters of gasoline per day and 1.1 million liters of diesel per day, according to Reuters.

Libya is seeking to restore foreign investment to the energy sector after two and a half years of relative peace after years of conflict.

It hopes to take advantage of increased demand for its oil and gas in the wake of supply concerns in Europe stemming from the war in Ukraine.

The Tripoli-based government agreed last month to proceed with an offshore gas project in cooperation with Italy’s Eni.