TRIPOLI, May 11 (Xinhua) -- Libya's state-owned oil company took full control of the country's largest refinery on Monday, ending a decade-long legal dispute with a United Arab Emirates-based company.
The National Oil Corp. (NOC) said it signed a final agreement with UAE-based Trasta to end their partnership in the Libyan Emirates Oil Refining Co. (LERCO), giving the NOC full ownership of the Ras Lanuf refinery and petrochemical complex.
NOC Chairman Masoud Suleman called the deal one of the most important developments in Libya's oil sector since the 2011 uprising, saying it closes one of the industry's most complicated disputes.
Although the case was fought through international arbitration, the dispute was also tied to Libya's political divisions. Libyan officials and analysts have linked tensions over the project to the UAE's support for eastern military commander Khalifa Haftar.
Haftar, who leads the eastern-based Libyan National Army, has repeatedly challenged the authority of the internationally recognized government in Tripoli, where the NOC is based.
The Ras Lanuf complex is located in Libya's "Oil Crescent," an area often controlled by Haftar's forces. Officials in Tripoli viewed the partnership with a UAE company as a strategic risk because of Libya's dependence on oil revenue.
LERCO was established as a joint venture to operate and develop the Ras Lanuf complex, but operations were disrupted after the 2011 overthrow of Muammar Gaddafi. The project later became tied up in legal disputes and force majeure declarations.
Located about 600 kilometers east of Tripoli on Libya's northeastern coast, the Ras Lanuf complex can refine about 220,000 barrels of oil per day. It includes a refinery, storage facilities, export terminals, and petrochemical units.
Under the agreement, all of Trasta's shares will be transferred to the NOC, allowing the complex to operate under full Libyan management for the first time in years.
Officials hope the move will help stabilize production and attract new investment to the conflict-hit region. ■
