Libya is pressing ahead with its ambitious plan to build a new oil refinery in Ubari, despite facing significant financial constraints. The project, led by Zallaf Oil and Gas, a subsidiary of the National Oil Corporation (NOC), aims to process 30,000 barrels of oil per day and produce essential fuels such as gasoline, diesel, and tanker fuel. Located in the remote Murzuq Basin, the refinery is expected to play a vital role in meeting domestic energy needs and reducing Libya’s reliance on imported refined products.
The initiative has already reached several key milestones, including the completion of basic engineering work and the signing of equipment supply contracts for the main refining units. Zallaf recently convened a board meeting in Tripoli to review progress and officially launch the second phase of the South Refinery project, which involves constructing the plant’s core infrastructure. However, the company continues to face a funding gap and is actively seeking contractors and financial partners to help bring the project to completion.
The Ubari refinery is part of Libya’s broader strategy to revitalize its downstream oil sector and stimulate economic development in underserved regions. By investing in domestic refining capacity, the government hopes to create jobs, enhance energy self-sufficiency, and attract foreign investment. The project also reflects a renewed commitment to infrastructure development, even amid ongoing political and economic challenges.
Despite the financial hurdles, Libya’s determination to move forward with the refinery signals a long-term vision for energy modernization. The NOC’s engagement with international partners and technical experts suggests that the country is laying the groundwork for sustainable growth. If successful, the Ubari refinery could become a cornerstone of Libya’s energy transformation and a catalyst for broader regional development.