Oil & Gas

Honeywell UOP, a U.S.-based company, has completed a feasibility study on expanding Libya’s largest oil refinery in Zawiya, located in the northwest of the country. The study supports the potential development of the refinery as part of Libya’s broader efforts to modernize its hydrocarbon sector and reduce dependence on imports. According to the findings, upgrading the refinery is viable and would lead to major savings by cutting back on government subsidies for petrol sales.

The National Oil Company (NOC) of Libya reviewed the study during a board meeting at its Tripoli headquarters. In a statement, the NOC described the results as "very encouraging," highlighting that the refinery upgrade would help meet a significant portion of domestic gasoline demand. This improvement is expected to save substantial financial resources and contribute to the country's broader economic stability, which remains fragile due to ongoing political and security challenges.

Currently, the Zawiya refinery has a production capacity of approximately 120,000 barrels per day. The proposed expansion would increase capacity by about 25%, boosting domestic output and reducing the country’s need to import refined fuel. This follows the refinery’s recent resumption of operations in December after a fire had temporarily halted production earlier in the month.

The feasibility study comes amid broader developments in Libya’s energy sector. In 2023, the NOC awarded Honeywell UOP a contract to build a new refinery in Ubari, western Libya, at a projected cost of $500–$600 million. Despite ongoing conflict, Libya currently produces around 1.4 million barrels of oil per day, with proven reserves nearing 50 billion barrels. Meanwhile, the government has formed a committee to review the legality and benefits of oil and gas contracts awarded in recent years.

Honeywell UOP, a U.S.-based company, has completed a feasibility study on expanding Libya’s largest oil refinery in Zawiya, located in the northwest of the country. The study supports the potential development of the refinery as part of Libya’s broader efforts to modernize its hydrocarbon sector and reduce dependence on imports. According to the findings, upgrading the refinery is viable and would lead to major savings by cutting back on government subsidies for petrol sales.

The National Oil Company (NOC) of Libya reviewed the study during a board meeting at its Tripoli headquarters. In a statement, the NOC described the results as "very encouraging," highlighting that the refinery upgrade would help meet a significant portion of domestic gasoline demand. This improvement is expected to save substantial financial resources and contribute to the country's broader economic stability, which remains fragile due to ongoing political and security challenges.

Currently, the Zawiya refinery has a production capacity of approximately 120,000 barrels per day. The proposed expansion would increase capacity by about 25%, boosting domestic output and reducing the country’s need to import refined fuel. This follows the refinery’s recent resumption of operations in December after a fire had temporarily halted production earlier in the month.

The feasibility study comes amid broader developments in Libya’s energy sector. In 2023, the NOC awarded Honeywell UOP a contract to build a new refinery in Ubari, western Libya, at a projected cost of $500–$600 million. Despite ongoing conflict, Libya currently produces around 1.4 million barrels of oil per day, with proven reserves nearing 50 billion barrels. Meanwhile, the government has formed a committee to review the legality and benefits of oil and gas contracts awarded in recent years.