Libyan Emirates Oil Refining Company (LERCO) is a joint venture between Libya's National Oil Corporation (NOC) and Trasta Energy, a subsidiary of the Emirati Al Ghurair Group, established to operate and upgrade the Ras Lanuf Refinery in Libya.

Historical Role

Until March 9, 2009, RASCO was the direct operator of the Ra's Lanuf complex. Following a $2 billion agreement concluded in 2008, NOC formed a joint venture with the UAE-based Al Ghurair Investment Group's subsidiary Trasta in March 2009, creating the Libyan Emirates Oil Refining Company (LERCO) to assume operational control. This marked the transition of operational management away from RASCO.​

Primary Operations

LERCO operates the Ra's Lanuf refinery and petrochemical complex, which includes the 220,000 barrel-per-day refinery, an ethylene plant with 1.2 million tons annual capacity, and polyethylene production facilities. The company produces fuel oil, gas oil, liquefied petroleum gas (LPG), naphtha, kerosene, and petrochemical products.​

Operational Status Statement

The Ra's Lanuf Refinery (220,000 bpd capacity) has been non-operational since August 2013 due to an ongoing commercial dispute between joint venture partners National Oil Corporation (NOC, Libya) and Trasta Energy Limited (UAE). The refinery closure persists as of November 2025, representing over 12 years of downtime. The associated petrochemical facilities (ethylene and polyethylene plants) at the complex operate separately and resumed production in 2025.

Dispute and Current Legal Status 

The Ra's Lanuf Refinery dispute began in August 2013 when the joint venture operator LERCO (Libyan Emirates Oil Refining Company) shut down the 220,000 bpd facility amid disagreements between Libya's National Oil Corporation (NOC) and its 50% partner Trasta Energy Limited, a subsidiary of UAE-based Al Ghurair Group.

In late 2013, Trasta and LERCO initiated arbitration proceedings at the International Chamber of Commerce (ICC) Court in Paris, claiming $812 million in damages from NOC. NOC achieved its first major victory in January 2018 when the ICC Tribunal dismissed all of LERCO's damage claims and instead awarded NOC approximately $116 million plus interest for its counterclaims. Trasta appealed the decision, but in February 2021, the Paris Court of Appeal upheld the arbitration ruling and ordered LERCO to pay NOC over $115 million plus benefits, totaling approximately $132 million. NOC exercised its call option to purchase Trasta's 50% shares in LERCO in February 2022, formally initiating the process to regain full control of the refinery.

The dispute reached its conclusion in June 2023 when a final arbitration ruling obligated Trasta to terminate the joint venture and transfer its entire 50% stake to NOC. Despite these legal victories, negotiations over the final purchase price continued, with NOC reportedly offering $150 million for Trasta's shares as of November 2024.

Throughout this 12-year dispute, the refinery has remained completely offline, while a separate arbitration under the Organization of Islamic Cooperation (OIC) investment treaty, with Trasta seeking $1.8 billion from NOC, remained pending as of 2024.

Once the ownership transfer is finalized and payment is settled, NOC is expected to assume 100% control and potentially restart refinery operations.

References

1. Offshore Technology. Hemanth. Jan 8, 2018. Libya’s National Oil calls for Ras Lanuf refinery operations restart
2. ARMTEL by ARMAN. Oct 1, 2019. Successful project for Ras Lanuf Oil and Gas Processing Company (Rasco)
3. LibyaHerald. Sami Zaptia. Nov 20, 2019. Ras Lanuf releases first batch of polyethylene to Libyan market
4. The North Africa Post. Mar 1, 2021. NOC wins appeal against LERCO over Ras Lanuf Refinery dispute
5. Energy Capital & Power. Aug 13, 2021. Refineries in Libya by Capacity
6. Hydrocarbon Processing. Feb 25, 2022. Libya's NOC to purchase Trasta’s 50% shares in LERCO 
7. libyaupdate. Jun 4, 2024. NOC wins arbitration against UAE’s Trasta on Ras Lanuf refinery
8. U.S. Energy Information Administration (EIA). Country Analysis: Libya (Page last updated: Dec 3, 2024)
9. National Oil Company. Jan 24, 2025. Ras Lanuf Successfully Restarts Second Polyethylene Production Line
10. Wikipedia. Ras Lanuf Refinery (Page last edited: Aug 8, 2025)
11. Wikipedia. Ras Lanuf Oil and Gas Manufacturing Company (Page last edited: Sep 19, 2025)
12. Linkedin Libya. National Oil Corporation company page (Accessed: Nov 21 2025)