Bahraini Islamic investment bank Gulf Finance House yesterday signed a memorandum of understanding with Libya to build a $3.8 million economic zone for energy companies operating in the country, officials in Tripoli said.
Gulf Finance, which invests according to Islamic principles, plans to build the zone 70 kilometres west of Libyan capital Tripoli on the Mediterranean coast.
“The end-value of the development is estimated to be around $3.8 billion once it is completed,” Gulf Finance House chairman Esam Janahi said at the signing ceremony.
The energy city would provide business infrastructure for oil and gas producers, refiners, and companies involved in shipping, energy trading and support services, reported Reuters.
“The project … will help encourage more foreign investment, especially from the Gulf region,” said Hammed Hadhari, head of Tripoli’s Economic and Social Development Fund, the government development arm.
Libya plans to nearly double crude production by 2012 with an investment outlay of $30 billion to $40 billion.
The country also wants to become a major gas producer and aims to increase production to 3 billion cubic feet per day by 2010, with a potential for 3.8 Bcfd by 2015, compared with 2.7 Bcfd now.