Libya Delays Reopening Of Refinery

VENTURES AFRICA – Libya’s National Oil Corporation (NOC) has announced a delay in the planned July reopening of the largest refinery at Ras Lanuf.

Instead, a petrochemical unit, which does not run on crude oil, will resume operations. This was disclosed by a NOC top executive officer in a chat with Reuters on Friday.

According to available data, Ras Lanuf refinery can process 220,000 barrels of oil per day (bpd), hence it accounts for more than 50 percent of Libya’s oil refining capacity; the refinery is also an important source of refined oil products for the Mediterranean region.

The refinery stopped operations in 2011, during the uprising against the rule of Muammar Gaddafi, to date, it is yet to resume operations due to incessant delays resulting in strong impacts on the region’s oil market.

There is no official reasons for the delay from the NOC, but indications from the state oil firm suggest that protracted dispute over the price at which the refinery is supplied with crude oil is holding up its reopening.

The refinery is operating via a joint venture between Libya’s National Oil Corporation (NOC) and Al Ghurair group which is based in United Arab Emirates.

REUTERS