From the signing ceremony of the acquisition agreement for Ras Lanuf Refinery

The largest oil refinery in Libya witnesses a final deal with the UAE

The largest oil refinery in Libya witnessed a new development, after the National Oil Corporation announced that it had officially signed a final agreement with the UAE company “Trusta”. The agreement stipulates the end of the foreign partnership within the Libyan-Emirati Oil Refining Company (LEERCO), and the return of the Ras Lanuf complex and refinery to full Libyan sovereignty and management.

The head of the Libyan National Oil Corporation, Masoud Suleiman, said that the new agreement officially ends one of the most complex files in the Libyan oil and gas sector, after more than a decade of international judicial and arbitration disputes.

Ras Lanuf Refinery

He explained that the agreement stipulates the foreign party’s exit from Lerco, and that all of the foreign partner’s shares in the largest oil refinery in Libya are transferred to the National Corporation, thus returning the entire Ras Lanuf refinery and complex to the Libyan administration.

He stressed that the agreement opens the way for the restructuring and operation of the Ras Lanuf complex under full national management, in a step he described as one of the most prominent transformations that the Libyan oil sector has witnessed since 2011.

He added that what has been achieved represents the return of one of the country's most important oil and petrochemical assets to full Libyan control, paving the way for a new phase of rehabilitation, operation and development.

Ras Lanuf Refinery

The Ras Lanuf refinery tops the list of oil refineries in Libya with a refining capacity of 220,000 barrels per day, according to data from the Libyan refining sector at the specialized energy platform. The refinery constitutes one of the most important sources of production of naphtha, diesel, kerosene, and heavy fuel oil, and accounts for about two-thirds of the country's total refining capacity.

The refinery is located near the port of Ras Lanuf, between the cities of Bin Jawad and Marsa Brega on the northern coast of Libya in the Gulf of Sirte region, and is part of the Ras Lanuf petrochemical complex, which includes units for the production of ethylene and polyethylene, in addition to integrated export facilities.

The refinery refines a mixture of Masala and Sarir crudes, but it does not produce automobile gasoline, as the resulting naphtha is used to feed the ethylene plant of the petrochemical complex. Despite the strategic importance of the largest oil refinery in Libya, it has been out of operation since 2013, due to legal and commercial disputes between the National Oil Corporation and the foreign partner.

The acquisition agreement for Ras Lanuf Refinery  

Acquisition steps

In February 2022, the National Oil Corporation announced the resumption of procedures for purchasing Trusta’s 50% stake in Lerco, after it won an International Chamber of Commerce ruling that confirmed its right to implement the acquisition.

The Corporation said at the time that the company "Trusta" had tried to disrupt the Corporation's right to purchase its share through arbitration lawsuits, but the International Chamber of Commerce rejected those attempts and supported the Libyan Corporation's right to purchase the shares.

In November 2024, the corporation submitted an offer worth $150 million to acquire the “Trusta” stake, after it rejected a previous offer from the Emirati company to sell its shares for $173.5 million. With the signing of the new final agreement, the National Oil Corporation became the full owner of the Ras Lanuf refinery and complex, officially ending the foreign partnership within LERCO.

Signing ceremony of the acquisition agreement for Ras Lanuf Refinery

The exit file between the National Oil Corporation and the Emirati company has witnessed continuing legal and administrative complications over the past years. Libya is counting on restarting the Ras Lanuf complex to support local fuel production and reduce dependence on imports, as well as enhancing exports of petroleum and petrochemical products.

The final agreement between the National Oil Corporation and Trasta represents the beginning of a new phase for the revival of the largest oil refinery in Libya, in light of plans for rehabilitation, development, and restoration of refining capacity lost for more than a decade.

It is expected that restarting the refinery will contribute to supporting plans to modernize the Libyan refining sector, which has been suffering for years from declining employment rates and deteriorating infrastructure due to successive security and political crises.