Engineer's Milan office will project manage construction of Zorco's 200,000-barrels-a-day facility

Global engineering group Foster Wheeler has been appointed to oversee construction of a $4bn (£2.5bn) oil refinery in Libya. The crude oil refinery, which will produce 200,000 barrels a day, will be built at Mellita, near Zwara in west Libya, for Libyan client Zwara Oil Refinery Company (Zorco).

Foster Wheeler will act as consultant and project manager on the engineering, procurement and construction phase of the scheme, which is due to finish in 2014. This will include preparation of tender documents and advising on the selection of a contractor.

The Milan office will work on the deal. Marco Moresco, chief executive of Foster Wheeler Italiana, said: "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."

Ali Shamekh, chairman of Zorco, said: "This is a flagship project in north Africa requiring deep technical knowledge, experience and flexibility.”