LIBYA: Libya signs contract to build a refinery in the west of the country

Record ID: 343830

  • Title: LIBYA: Libya signs contract to build a refinery in the west of the country
  • Date: 24th October 2008
  • Summary: (MER-2) TRIPOLI, LIBYA (OCTOBER 23, 2008) (REUTERS) SIGNBOARD READING 'CELEBRATION OF CONTRACT SIGNING FOR ZWARA OIL REFINERY WITH FOSTER WHEELER COMPANY' OFFICIALS OF LIBYA OIL HOLDING COMPANY, FOSTER WHEELER AND HSBC BANK SITTING AHEAD OF SIGNING CEREMONY CHAIRMAN OF LIBYA OIL HOLDING COMPANY, DR. ALI SHAMEKH OFFICIALS OF HSBC MANAGER DIRECTOR OF HSBC DARREN DAVIS OFFICI
  • Embargoed: 8th November 2008 12:00
  • Keywords:
  • Topics: Industry,Energy
  • Reuters ID: LVA9GS6MQT1840KN7TDA7WDBZJK4
  • Story Text: Libya oil holding company signs a 4 billion U.S. dollars contract to implement the Zuwara oil refinery project at the western region of the country near the border with Tunisia.
    Libya signed an agreement on Thursday (October 23) with engineering and construction company Foster Wheeler Ltd. to manage the building of a 200,000 barrel per day (bpd) refinery in western Libya.
    Construction of the Zuwara unit in the Mellita region should be completed in three to five years' time, officials said at a signing ceremony in the Libyan capital.
    On the Libyan side the agreement was signed by refining company Zorco and oil marketer Oilibya, owned by Libyan holding company Libyan African Investment Portfolio (LAP), supervised by state sovereign wealth fund Libyan Investment Authority.

    "By this project Libya will be 100 percent self sufficient from, I mean all oil products including gasoline, diesel, and of course the location of Libya is very strategic and very important," said Ali Shamekh, chairman of Libya oil holding company.
    A senior official at Foster Wheeler's engineering and construction group said the unit would be an ultra-modern low sulphur refinery producing 200,000 bpd of refined products. He said the investment for the entire project would be four billion U.S. Dollars (USD).
    The new installation would take Libya's domestic refinery capacity to about 580,000 bpd.
    Libya refines about 380,000 bpd of crude in its Libyan refineries.
    About 60 percent of the products are exported, with Europe the principal destination.

    "This is a very big project, we are talking about a multi-billion dollar project, and it is important because the particularity of the project makes us very excited because we can put forward our best skills and competence. It is our bread and butter," said director of proposals at Foster Wheeler, Enzo Gioviale.
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