Libya announced on Monday, May 11, 2026, the signing of a final agreement ending the foreign presence within the Libyan-UAE Oil Refining Company (Liroco), according to which the Libyan state regains full control over the Ras Lanuf complex and refinery, one of the most important strategic assets in the Libyan energy sector.
The Chairman of the Board of Directors of Libyan Oil, Masoud Suleiman, said that the agreement was concluded after a decade of international judicial and arbitration disputes, to close a complex file in the Libyan oil and gas sector, many years ago.
He stressed that the move officially ended the foreign partnership within Lerco, and would pave the way for the restructuring and operation of the Ras Lanuf oil complex, under full Libyan management, stressing that the most important transformations in the Libyan oil sector since 2011 have taken place.
The agreement stipulated that the foreign partner would fully exit the ownership structure and transfer all shares to the National Oil Corporation (NOC), ending a complex dispute that spanned more than 10 years over the management and operation of the refinery, and included international arbitration lawsuits and major financial claims that affected the conglomerate's ability to return to business.
The foreign partner with which the partnership in Ras Lanuf Refinery has been fully terminated is Trasta Energy, a subsidiary of the UAE-based Al Ghurair Investment Group
The Prime Minister of the Government of National Unity welcomed the return of the refinery to full Libyan sovereignty, considering that the restoration of control of this vital facility reflects the state's ability to restore its institutions and re-employ them in the service of the national economy.
Ras Lanuf refinery. The largest pillar of the Libyan refining sector
The Ras Lanuf refinery is the largest oil refining facility in Libya and represents the main pillar of the country's petrochemical industry and has a design capacity of about 220,000 barrels per day, which alone makes it responsible for more than two-thirds of the total domestic refining capacity estimated at 380,000 barrels per day.
The refinery is integrated with a huge petrochemical industrial complex, which is one of the most important industrial projects in Libya, as it includes specialized units for the production of plastics and intermediates with a total capacity of 1.2 million tons per year.
The resumption of full operation at the refinery is expected to cover a large percentage of the needs of the local market, especially in diesel and gasoline, exceeding 40% of the current deficit, which will directly reduce the dependence on foreign imports.
Libya has Africa's largest oil reserves
Oil is the backbone of Libya's economy, providing more than 95% of state revenues. Production is currently stable at about 1.26 million barrels per day, while Libya has the largest proven oil reserves in Africa, estimated at 48.4 billion barrels, and its oil is characterized by its light and low sulfur content, which makes it a high-quality type.
NOC is leading a strategic plan that extends until 2030 and focuses on increasing production to 2 million barrels per day by the end of 2027, as well as reactivating rounds of onshore and offshore exploration and exploration licenses for international companies, with the aim of expanding the production base and boosting investments in the sector.