Zallaf Libyan Oil & Gas company signed its first contracts for constructing the South Refinery project with the US Honeywell UOP consortium.

The Chairman and members of the Management Committee of Zallaf, and Muhammad Al-Muhaisen, Regional Director of Honeywell UOP, attended a ceremony to mark the event on Sunday.

The agreement allows the US company to conduct the initial engineering work for the refining units and grant technical licenses for the authorized contingents.

The current stage, known as, (FEED), is one of two stages Libya signed with the US company.

As for the second phase, Libya will negotiate another contract for installation work and final tests for the refinery, provided that Honeywell supervises the installation process.

The National Oil Corporation (NOC) said the step comes to fulfill the NOC's chief promise to expedite the establishment of the South Refinery, hoping it would alleviate the suffering of the southern community, resolve the fuel shortage crisis there, and create a spatial development in the south.

A report by the Wall Street Journal disclosed Friday that the American companies Honeywell International and Halliburton had concluded deals with the NOC worth $1.4 billion to develop an oil field and build a refinery.

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