The National Oil Corporation (NOC) in Benghazi announced the start of geotechnical and geophysical works for the long-awaited South Refinery Project, located near the Sharara oil field in southwest Libya.
The refinery is projected to generate annual profits of around $75 million, marking one of the most significant industrial investments in the Fezzan region in decades.
In a statement released on Saturday, the NOC confirmed that testing of the site’s main water well had been completed in preparation for the refinery’s construction phase. The project will soon begin supplying the on-site residential facilities as part of its early development plan.
Described by the NOC as “a dream becoming reality from the heart of Fezzan,” the refinery will have a daily output capacity of 1.3 million liters of gasoline, 1 million liters of diesel, and 600,000 liters of jet fuel. Beyond its production potential, the project is expected to create new investment opportunities in logistics, energy services, and petrochemical industries across southern Libya.
The South Refinery is a key part of Libya’s strategy to reduce fuel imports, strengthen national energy independence, and stimulate regional development. Once completed, it will serve as a cornerstone for economic growth and job creation in the underdeveloped south, improving local infrastructure and energy accessibility.
In July, the Zallaf Exploration and Production Company, which is leading the project, confirmed the launch of the second phase of construction, stressing that work is proceeding “seriously and on schedule.” Zallaf noted that the entire first phase, including all engineering designs, was completed according to international technical standards in coordination with the NOC.
