Zallaf Libya Oil & Gas, a subsidiary of Libya’s state-owned National Oil Corp (NOC) has awarded a contract to US company Honeywell-UOP for the construction of the proposed South Refinery project.
Planned to be built in Ubari, the refinery project is being developed in two phases at an estimated cost ranging between $500m and $600m, reported Reuters.
The contract, which comes as part of the first phase will involve the front-end engineering design (FEED) of the project.
Under the contract, Honeywell–UOP will be responsible for the initial engineering works for the refining units and granting technical licences to the licensed units.
To implement the second phase of the project, Zallaf Libya will sign another contract with a potential firm to undertake installation works and final trials for the project.
The South Refinery will be equipped to process nearly 30,000 barrels per day (bpd) of crude oil to produce cooking gas, jet fuel and other products, including a daily production of 1.4 million litres of petrol and 1.1 million litres of diesel.
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In a press statement, Zallaf Libya said: “This step comes among other steps within the new vision adopted by the National Oil Corporation, and the promises made by the chairman of the board of directors of NOC to expedite the establishment of the South Refinery and assist in the development of the south region.”