TransAsia Gas International and Star Petro Energy, subsidiaries of Dubai based Al Ghurair Investments have signed a joint venture agreement with the National Oil Corporation (NOC), Libya for the upgrading and revamping of Ras Lanuf refinery in Libya worth US$ two billion.

The agreement was recently signed at the Libyan capital Tripoli. The Group is also finalising agreements with the Sri Lankan Government to setup a privately owned refinery at Hambantota, with a capacity of 100,000 bpd.

Upon signing of the agreements/ approvals, the Group is targeting to start construction of the refinery within a year and a half. With current demand for petroleum products in Sri Lanka scaling to more than 4 million tons per year, this project will boost local production and reduce imports.

The 220,000 bpd Ras Lanuf refinery up-gradation project in Libya will increase efficiency and improve overall quality of products to comply with latest Euro standards.

The entire project will be implemented in two stages and take five years to complete. The first stage will involve the revamping and refurbishment of the existing plant to increase its capacity and improve its marketing capability.

The second stage will deal with the upgrading and expansion work of the refinery, using state-of-the-art technology to improve the quality of products to meet the international standards.

Commenting on the new agreement, Essa Al Ghurair, Vice-Chairman of Al Ghurair Investments said: "This is a first step for the Group's investment in the petroleum refining sector in Libya.

This deal will strengthen the bilateral relationship between UAE and Libya, and will create foreign interest in investment opportunities in various sectors in Libya, including oil and gas.

We will endeavour to live up to the expectations of our partners, and hope to excel in this assignment." Daily News