(MENAFN) A Libyan trade and investment minister said that his country and and Tunisia are considering building an oil refinery and pipelines with the help of international investors as the North African neighbours step up economic cooperation, Reuters reported.

Tunisia has only one oil refinery in the northern city of Bizerte with capacity of 30,000 bpd, and has said it plans to build another with capacity of 120,000 bpd to satisfy its growing economy.

It has far less oil than Libya, whose estimated reserves of 37 billion barrels put it among the global top 10 oil reserve owners.

Tayeb said the two countries planned to build a tourist village on their border and reiterated Libya's intention to establish a free trade zone in Zwara Aboukammash nearby.

In another sign of improving economic ties between the two countries, Libyans and Tunisians will soon be able to transfer funds across the border and exchange them into local currency, Tayeb said.