October 16, 2008

Libya inks JV for oil refinery and aluminum smelter

Arabianbusiness.com reported that Libya African Investment Portfolio has signed a JV agreement with UK based Klesch and Co to invest in building a new 300,000 barrels per day capacity oil refinery, and a 725,000 tonnes per year Aluminum smelter in Libya. The deal represents an investment of approximately USD 8 billion.

The complex is scheduled for completion in 2011 and will use the latest technology allowing it to optimize the production of finished goods. Both parties also confirmed their interest in jointly developing the mining and refining of Bauxite in Western Africa.

Mr Abdulfatah Sharif of Libya African Investment Portfolio said that "We are delighted to have signed this agreement. We welcome the investment and the development of our infrastructure and are extremely impressed with the Klesch organization.”

Mr Gary Klesch said "We welcome the opportunity to work alongside the Libyan Government in developing their downstream capabilities and firmly believe in the long term growth prospects of the country and are supportive of their economic development plans.