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Timeline: Arbitration, War and Libya’s Long Battle Over the Ras Lanuf Refinery May 24, 2026 On May 11, 2026, Libya’s state-run National Oil Corporation (NOC) signed a deal with UAE-based Trasta Energy, formally ending a dispute that dates back to the aftermath of Muammar Gaddafi’s overthrow in 2011. The agreement paves the way for the Ras Lanuf oil complex — a key strategic facility on Libya’s northeastern coast — to return to state control. But the outcome follows years of international arbitration, legal wrangling and discreet negotiations behind closed doors. A look back at one of the most intricate disputes in Libya’s oil sector history. July 2008 – NOC signs partnership with Emirati group Libya’s National Oil Corporation (NOC) signed a shareholders’ agreement on July 14, 2008, with Trasta Energy, a Dubai-based company incorporated a month earlier as a subsidiary of the Emirati conglomerate Al Ghurair Investment Group. The agreement created the Libyan Emirates Oil Refining Company (LERCO), a 50-50 joint venture tasked with modernizing and operating the Ras Lanuf refinery on Libya’s northeastern coast. The planned investment was estimated at $2 billion, according to Gulf News. March 2009 – LERCO takes over Ras Lanuf operations One year later, LERCO officially became the owner and operator of the refinery. Trasta injected $175 million into the venture, according to findings later established in a February 2022 International Chamber of Commerce (ICC) arbitral award. At the same time, the parties signed a Feedstock Supply Agreement (FSA), under which the NOC committed to supplying crude oil to LERCO for 25 years at a fixed price that was never made public. February 2011 – Gaddafi’s fall halts refinery operations The uprising that erupted in Libya in February 2011 plunged the country into civil war and forced the shutdown of the Ras Lanuf refinery. After Muammar Gaddafi’s regime collapsed in October 2011, Libya’s new authorities began reassessing several agreements signed under the former government, including the partnership with Trasta. August 2012 – Partial restart of the refinery After months of delays, the Ras Lanuf refinery partially resumed operations in late August 2012, according to Gulf Business. However, activity at the site, which has a nominal refining capacity of 220,000 barrels per day, remained fragile because of Libya’s deteriorating security environment. April 2013 – Workers challenge the partnership Tensions resurfaced publicly on April 4, 2013, when employees protested outside NOC headquarters. Workers denounced what they described as excessive advantages granted to the Emirati operator and opposed a 20-month extension of the crude supply contract initially signed in 2009, according to the Middle East Economic Digest. Under pressure, the NOC agreed to review the arrangement. August 2013 – Ras Lanuf shuts down completely The contractual dispute quickly escalated. At the end of August 2013, the NOC stopped supplying crude oil to LERCO, bringing refining operations to a halt. LERCO subsequently declared force majeure, arguing that the shutdown resulted from a commercial dispute rather than technical or security issues, according to the Middle East Economic Survey. Late 2013 – Arbitration proceedings begin in Paris The dispute then moved into arbitration. Toward the end of 2013, Trasta Energy and LERCO each launched separate proceedings against the NOC before the International Chamber of Commerce in Paris. LERCO sought around $812 million in damages, while Trasta filed claims exceeding $100 million, according to NOC statements. January 2018 – ICC rejects Trasta and LERCO claims The arbitration tribunal ultimately rejected both claimants’ cases. On January 5, 2018, the ICC dismissed all of LERCO’s claims. The decision followed an earlier November 2017 ruling that had already rejected Trasta’s separate case. The rulings opened the way for the NOC to pursue unpaid crude oil invoices. February 2018 – NOC awarded $115 million Following the favorable rulings, the NOC secured a decision ordering LERCO to pay $115 million plus interest for unpaid crude oil supplies, according to Energy Voice. By February 2021, the amount owed had exceeded $132 million. February 2021 – Paris Court of Appeal confirms ICC ruling LERCO and Trasta sought to overturn the arbitration awards before the Paris Court of Appeal. In February 2021, however, the court upheld the ICC ruling related to the 2013 shutdown of Ras Lanuf, making the NOC’s claim enforceable internationally. February 2022 – Trasta ordered to surrender its stake The dispute entered a decisive phase on February 21, 2022, when a new ICC arbitral award ruled entirely in favor of the NOC. The tribunal confirmed the $115 million payment obligation and ordered Trasta Energy to transfer its entire 50% stake in LERCO to the Libyan state oil company. Several days later, Trasta filed an annulment request before the Paris Court of Appeal. May 2023 – French court rejects Trasta appeal On May 23, 2023, the Paris Court of Appeal rejected Trasta’s annulment application in full and confirmed the February 2022 award. The court also ordered the Emirati group to pay the NOC €100,000 in legal costs, according to the published judgment. May 2026 – Final transfer agreement signed Three years after the French ruling, the NOC announced on May 11, 2026, that it had signed a final agreement with Trasta Energy transferring the Emirati company’s entire 50% stake in LERCO. The deal returned the Ras Lanuf complex to full Libyan control. “This agreement is one of the most significant developments for the Libyan oil sector since 2011,” NOC Chairman Masoud Suleman said, according to Libya Herald. Today – Restart planned within one year The NOC says it aims to restart the refinery within the next 12 months. Maintenance costs are estimated at around $60 million. The issue also has geopolitical implications. Ras Lanuf is located in Libya’s “oil crescent,” an area often controlled by forces loyal to eastern commander Khalifa Haftar. Tripoli had long viewed the presence of an Emirati partner as strategically sensitive because of the UAE’s support for Haftar. According to Libyan officials, an unfavorable legal outcome could have exposed the country to claims exceeding $10 billion. Beyond the ownership dispute, the refinery remains central to Libya’s industrial ambitions. The NOC plans to increase the country’s refining capacity to 660,000 barrels per day, up from around 380,000 currently. Source: ecofin agency |
