Libya's National Oil Company (NOC) has reached an agreement with a consortium of private companies from the United Arab Emirates (UAE) regarding the planned upgrade of its largest oil refinery.

Under the new deal, the state-owned producer will work alongside the Star Consortium, which includes TransAsia Gas International and Star Petro Energy, the latter a subsidiary of ETA Ascon Star Group.

Both parties will hold a 50 per cent stake in the venture, which will see the Ras Lanuf refinery benefit from $2 billion worth of upgrades, including measures to introduce the latest technology capable of converting fuel oil into high-value products for both domestic use and export.

Commenting on the deal, Star Consortium chairman Abdullah Ahmad Al Ghurair told the Tripoli Post: "This deal with Libyan National Oil Company is a major achievement for TransAsia Gas International, which clearly demonstrates its capacity to carry out work on large-scale refinery projects. By winning this JV contract, the company has moved one step closer to becoming a fully integrated energy company."

Presently, the Ras Lanuf plant produces some ten million tonnes of petrochemical products per year, with gas oil supplemented by kerosene, ethylene and polyethylene.