According to OGJ, Libya has five domestic refineries, with a combined capacity of 378,000 bbl/d. Libya's refineries include:
1) the Ras Lanuf export refinery, completed in 1984 and located on the Gulf of Sirte, with a crude oil refining capacity of 220,000 bbl/d;
2) the Az Zawiya refinery, completed in 1974 and located in northwestern Libya, with crude processing capacity of 120,000 bbl/d;
3) the Tobruk refinery, with crude capacity of 20,000 bbl/d;
4) Sarir, a topping facility with 10,000 bbl/d of capacity; and
5) Brega, the oldest refinery in Libya, located near Tobruk with crude capacity of 8,000 bbl/d.
Libya's refining sector was impacted by UN sanctions, specifically UN Resolution 883 of November 11, 1993, which banned Libya from importing refinery equipment. Libya is seeking a comprehensive upgrade to its entire refining system, with a particular aim of increasing output of gasoline and other light products.
Sector Organization
Libya's oil industry is run by the state-owned National Oil Corporation (NOC). The NOC is responsible for implementing the Exploration and Production Sharing Agreements (EPSA) with international oil companies (IOCs). NOC is also responsible for field development and improvements as well as downstream activities. IOCs operating in Libya work in exploration, production, transportation and refining. IOCs with operations in Libya include Eni, Total, Repsol YPF, StatoilHydro, Occidental, OMV, ConocoPhillips, Hess, Marathon, Shell, BP, ExxonMobil and others.
IOC participation in Libya's oil concessions was initially as high as 49 percent. However, changes to the production sharing agreements under the EPSA – IV licensing round (2005) limited IOC production shares. The Libyan government has since required that IOCs already operating in the country rewrite existing contracts to comply with the new framework. The key elements include a reduction of the companies' share of output (up to half of what it was), a commitment of fresh investment in exchange for an extension of the license period (some up to 15 years).
Overseas Investment
In 2009, the Libyan government invested in Eni, an Italian oil company that has been operating in Libya since 1959 and is Libya's largest foreign oil producer. Through the country's sovereign wealth funds, Libya has been eyeing additional energy investments in Europe and Africa.
Libya also has refinery operations in Europe through its overseas oil retail arm, Tamoil. Through Tamoil, Libya is a direct producer and distributor of refined products in Italy, Germany, Switzerland, and Egypt.