HSBC Holdings PLC (HBC) said Thursday it has been appointed as financial adviser by Libya's Zwara Oil Refining Co., or Zorco, on a $4 billion oil refinery project in the country's northwest.

HSBC will advise Zorco, the project company owned by Tamoil Africa Holding Ltd., on building the 200,000 barrel a day refinery, which will be the first major government-sponsored project to seek commercial finance, the lender said in an emailed statement.

The investment is the first for Tamoil, which is owned by Libya Africa Investment Portfolio and the Libyan government, in the North African state and the largest greenfield government-led project in the country, HSBC said.

"This project will be the most environmental friendly refinery ever built and will service the local, regional and international markets. It will also be the first project in Libya to be financed on a commercially structured project finance basis costing around $4 billion," Ali Shamekh, Chairman of Tamoil and of Zorco said in the statement.