The National Oil Corporation (NOC) and Italian oil major Eni have announced the completion of Phase 2 of the Bahr Essalam offshore gas project, a joint venture between the two companies operated by NOC subsidiary Mellitah Oil & Gas Company (MOG). Production from the field’s ninth well began earlier this month, while work on the last well is currently in progress.
Phase 2 of the project increases field production from 995 million standard cubic feet of gas per day (MMSCFD) to 1,100 million MMSCFD and completes the phased development of Libya’s largest offshore producing gas field.
The development of Libya’s ‘A’ and ‘E’ offshore structures was discussed at a meeting at the Presidency Council (PC) between the chairman of the PC, Mr Fayez al-Sarraj; NOC chairman, Eng. Mustafa Sanalla; and Eni’s CEO Mr Claudio Descalzi, following the approval of a field development and implementation plan in March of this year.
The estimated total cost of the project is 5.6 billion USD, with production expected to start in the third quarter of 2022 (‘A’) and 2024 (‘E’) respectively – adding 760 million MMSCFD and 35,000 barrels of condensate per day to production.
The completion of the Wafa Inlet Gas Compression (WIGC) project was also welcomed by parties - a significant onshore achievement providing increased gas supply to the domestic market.
Cooperation between Eni and the General Electricity Company of Libya (GECOL) to increase electricity generation through the deployment of typical power generation and renewable energy projects was also reviewed.
According to NOC’s chairman:
“The completion of Phase 2 is a testament to NOC’s ongoing partnership with key international players and our ability to drive international investment to the Libyan energy sector, despite an ongoing backdrop of conflict. Increased domestic gas production strengthens our energy security and reduces our dependence on costly fuel imports.
"Our longstanding cooperation with Eni also helps generate new economic and training opportunities for our country - and its people. The advancement of renewable energy projects is a testament to our shared vision of a sustainable energy sector and a diversified economy.”