Ras Lanuf
The fate of the Ras Lanuf oil refinery was settled on 11 May, when NOC signed a final agreement with United Arab Emirates company Trasta Energy, bringing an end to a long and troubled partnership. Trasta Energy, a subsidiary of the al-Ghurair Group, set up a joint venture with NOC in 2009 in the form of the Libyan-Emirati Oil Refining Company (LERCO). The joint venture was established to operate and develop the 220,000-barrel-per-day Ras Lanuf refinery.
However, operations were disrupted in 2011, after which disputes developed, including over Trasta Energy’s demands that NOC make concessions it refused to grant. Trasta Energy complained that NOC had violated crude-supply agreements for the refinery, while NOC accused Trasta Energy of failing to pay for supplies it had received. After various court battles, an arbitration ruling in 2022 found in NOC’s favour, meaning it was free to buy out Trasta Energy’s 50 percent stake in the refinery. However, the purchase process moved slowly, drawing criticism in Libya that NOC was wasting an opportunity.
This latest agreement will see Trasta Energy withdraw completely, with its share in LERCO reverting to NOC. As such, the Ras Lanuf refinery will finally return to full Libyan ownership. NOC head Masoud Suleiman, who signed the deal on NOC’s behalf, described the agreement as a means of paving the way for the ‘restructuring and operation of the Ras Lanuf complex under full Libyan management’. He also said NOC would revitalise the complex and restore its role as a major regional refining and petrochemicals hub.
While it may well take some time before the refinery is operational again, the signing of this deal at least draws a line under a long and costly saga for Libya.
This excerpt is taken from Libya Focus, our monthly intelligence report on Libya. Click here to receive a free sample copy.The May 2026 issue of Libya Focus also includes the following:
Implications
Politics
- UNSMIL presses ahead with ‘Small Convening’…
- Boulos is still trying to forge ahead with his plan…
- Football fans set fire to GNU headquarters…
Profile
- Ibrahim Dbeibah
Security
- LAAF stages major military manoeuvre…
- Violence in Zawiya
- Forces take part in Turkish military exercise
Energy & Economy
- NOC signs deal to settle Ras Lanuf refinery case
- NOC is allocated USD 2.19 billion budget
