The refineries will be located in the eastern and southern regions and will have a combined capacity of 6,000 barrels per day (bpd).

According to a cabinet statement said, Libyan Prime Minister Abdullah al-Thinni and the oil services company officials have met recently at the Cabinet office in Al-Beida, to discuss over the project contracting terms.

However, the details of the project financing remain undisclosed as the central bank halted development funds in an effort to limit its spending amid dropping drop in oil prices.

Due to oil revenues loss, the central bank, which is currently paying only public salaries and subsidies, has utilized its quarter of its foreign currency reserves in 2014.

The move is part of Libya’s efforts to address the growing domestic fuel demand while reducing imports and save on depleting foreign currency which is required to finance fuel imports, Libya Herald reported.

Currently, Libya has two main refineries, including the 120,000-bpd Zawiya refinery supplying western Libya and the 20,000-bpd Tobruk refinery, as well as a small refinery in Sarir in the remote south.

 

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