Libya restores sovereignty over key refinery from the UAE
After more than a decade of dispute involving a UAE-linked partner, Libya has secured a significant breakthrough in securing sovereignty over its oil sector.
Libya’s National Oil Corporation (NOC) announced on May 11th that it has taken full control of the Ras Lanuf Refinery, marking the end of a prolonged international dispute and bringing one of the country’s most important energy assets entirely under Libyan management, as reported by the Libya Herald. The agreement closes a long-running controversial partnership and signals a new phase for the major refining and petrochemical complex.
The dispute over the Ras Lanuf complex extends beyond commercial considerations, reflecting Libya’s wider political fragmentation and its position within regional dynamics. The tensions surrounding the deal, which dates back to 2008, is linked to the United Arab Emirates’ support for military commander Khalifa Haftar, as the Oil Crescent on the north-eastern coast, where the Ras Lanuf Refinery is located, falls under the control of Haftar-aligned forces.
A newly released United Nations report has further detailed how strategic Libyan territory and Haftar-aligned units have allowed the UAE to facilitate support, through the movement of weapons, fuel and Colombian mercenaries, to Sudan’s Rapid Support Forces (RSF). These overlapping dynamics have further intensified scrutiny of Haftar’s control over strategic regions and external commercial partnerships, such the Haftar family’s connection and control over the Arkenu Oil Company.
In a statement, the NOC confirmed that its Chairman, Masoud Suleiman, signed a final agreement with the Emirati partner Trasta Company, concluding more than a decade of international legal and arbitration proceedings.
The deal formally terminates the partnership within the Libyan Emirati Refinery Company (LERCO), with the foreign partner withdrawing and its shares reverting to the NOC. As a result, ownership and control of the Ras Lanuf refinery and its wider complex now rest fully with Libya.
The Corporation described the agreement as one of the most significant developments in the Libyan oil sector since 2011. It said the settlement definitively resolves one of the most complex issues in the country’s oil and gas industry, returning a strategic national asset to complete Libyan sovereignty.
The NOC Chairman praised the efforts of the negotiating team, as well as the legal and technical departments involved throughout the years of dispute, such legal and administrative disputes have significantly hampered the facilities production over the years.
He characterised the outcome as a major national achievement, reflecting Libya’s capacity to defend its rights and recover key assets through legal and negotiated means.
The Corporation also acknowledged the work of its relevant departments and subsidiaries, describing the agreement as the beginning of a renewed effort to revitalise Ras Lanuf and restore its role as a leading refining and petrochemical centre in the region.
Libya Herald, The Libya Observer, Maghrebi.org
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