The Libyan energy industry is experiencing a resurgence, with foreign investment in the sector signaling a return to the industry’s full potential. Notably, Spanish energy company Repsol is launching an exploration campaign in the Sharara fields, while TotalEnergies has begun reopening the Mabrouk sites destroyed by ISIS in 2015. These moves reflect the renewed commitment of foreign partners to rebuild infrastructure. They are also supported by the government’s injection of approximately US$7 billion into the NOC. Although challenges remain, Libya’s energy industry is on its way back to its former glory with the help of foreign investment.
Zallaf, a subsidiary of the National Oil Corporation, has signed a $600 million contract with Honeywell UOP to build a 30,000 b/d refinery in Ubari, in southwestern Libya. The project aims to supply the Libyan market with diesel, kerosene, and LPG,
which has become a pressing need for the country. Libya’s refining sector has been in decline over the past decade, producing only a third of the country’s consumption by 2021.
The NOC/Honeywell agreement, in addition to gas capture solutions, is expected to provide a much-needed boost to the Libyan refining sector.
The Libyan government’s new Floating Tank Project will help boost the country’s oil production and support its plan to develop local refineries.