It seems that a new crude oil refinery could be on the way in Libya, after Foster Wheeler revealed that its Milan-based subsidiary has been awarded a contract for a new 200,000 barrels per stream facility at Mellita, near Zwara.

Foster Wheeler Italiana S.p.A., part of the group’s Global Engineering and Construction Group, has been awarded the contract by Zwara Oil Refinery Company Limited (ZORCO) for consultancy and project management services.

The planned new 200,000 barrels per stream day crude oil refinery is to be located at Mellita, near Zwara, in the Great Socialist People’s Libyan Arab Jamahiriya.

With an estimated total investment cost of around $4bn, the facility includes a state-of-the-art facility aimed at producing premium quality gasoline, jet fuel and diesel with minimal fuel oil production, and related utilities, off-sites and marine facilities.

Foster Wheeler’s scope under the contract includes the optimisation of the refinery configuration, the selection of the licensors and the front-end engineering design (FEED), including preparation of a cost estimate. Foster Wheeler will also prepare the tender documents for the engineering, procurement, construction (EPC) phase.

“We are indeed extremely pleased to be awarded this prestigious contract by ZORCO,” said Marco Moresco, CEO of Foster Wheeler Italiana.

“We have strong roots in Libya and we look forward to leveraging our in-depth refinery expertise to build on the excellent working relationships established in the past.”

“This is a flagship project in North Africa requiring deep technical knowledge, experience and flexibility,” said Dr. Ali Shamekh, Chairman of ZORCO Ltd.

ZORCO is a project company in which Tamoil Africa Holdings Ltd. holds the equity.