U.S. company Honeywell UOP has prepared a feasibility study on the expansion of Libya’s largest oil refinery as part of the overall development of the country’s hydrocarbon industry.
The study found that the upgrading of the Zawiya refinery in Northwest Libya is feasible and would save large funds spent on subsidies of petrol sales in the North African OPEC producer.
Libya’s state National Oil Company discussed the results of the study at a board meeting at its headquarters in Tripoli on Monday, it said on its website.
Libya's economy is heavily dependent on its oil industry, which accounts for over 95% of export revenues and a significant portion of its GDP. The country holds Africa's largest proven oil reserves and is a member of OPEC. Its oil is highly valued for its low sulfur content, known as "sweet crude," and its proximity to European markets.
However, political instability and civil unrest since 2011 have severely impacted production, leading to frequent disruptions. While production has been volatile, the National Oil Corporation (NOC) is working to attract foreign investment and increase output, with the goal of reaching pre-conflict levels.
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