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LONDON, May 13 (Reuters) - Libya aims to restart its 220,000-barrel-per-day Ras Lanuf oil refinery within six months to a year to meet domestic market needs, the chairman of the National Oil Corporation , Masoud Suleiman, told reporters in London on Wednesday.

The refinery, which is the largest in Libya, has been out of operation since 2013 due to an arbitration dispute between the National Oil Corporation and its Emirati partner, Trasta.

The National Oil Corporation said on Monday that it had signed a final agreement with Trasta to end the partnership and transfer ownership of the Ras Lanuf refinery and complex to full Libyan sovereignty and management.

"The budget has been allocated," Suleiman said regarding the refinery's restart, adding that the National Oil Corporation has the manpower and equipment needed for maintenance work, which is expected to cost around $60 million.

Libya’s oil sector, the country’s main source of income, has been plagued by ongoing turmoil due to domestic and regional political chaos since the 2011 NATO-backed uprising that ousted former President Muammar Gaddafi.

The Zawiya refinery, which has a production capacity of 120,000 barrels per day, was shut down last week due to clashes that took place nearby.

Suleiman explained that the production of the Ras Lanuf refinery will be mainly allocated to the local market, and that Brega Oil Company, which is affiliated with the National Oil Corporation, will handle the marketing process.

He added that the National Oil Corporation expects initial operating rates of around 200,000 barrels per day, to be gradually increased to its full production capacity.