Agip North Africa BV, a unit of Italian state energy conglomerate Ente Nazionale Idrocarburi (ENI), has reached a final agreement with Libya`s National Oil Corp. (NOC) on the development scheme for a major gas, oil, and condensate development project.
The project involves a combined 1.8 billion boe of reserves in offshore Block NC41 and onshore Block NC169. Since signing an agreement on the project plan in mid-June, says ENI, the technical details and results of the feasibility studies have been evaluated, and commercial agreements have been finalized.
Development scheme
The project`s main components are:
- Platform C on Block NC41. A fixed drilling and production platform and subsea clusters will be installed 110 km north of Tripo* in 180 m of water. Subsea pipelines of 34 and 10-in. diameters will transport gas and condensate onshore to a gas processing plant at Melitah, on the Libyan coast.
- Wafa pipeline system. A pipeline will connect onshore gas and liquids production to the Melitah plant. The system will originate in the Block NC169 production area, 550 km southwest of Tripoli; it will consist of 30 and 16-in. gas and liquids lines. Oil and gas discoveries along the route of this pipeline system can easily be connected to it, thereby facilitating their commercial development.
- The Melitah gas processing plant. Located midway between Sabratha and Zuara, the 10 billion cu m/year plant will treat gas and condensate. About 20% of its output will be used domestically, and the rest, exported.
- Export pipeline to Sicily. A 600-km, 32-in. subsea export pipeline will be laid from the Libyan coast to Sicily, and a compressor station will be built.
Agip Gas BV, another ENI affiliate, will be operator of the project. Project investments are expected to total $5.5 billion, including the export line. First production is expected in late 2003.
An international tender for basic engineering and project management has been issued, and the contract award is expected soon, says ENI. International tenders for the construction packages will be issued soon, as well.
Agip already has net production of 80,000 b/d of oil in Libya from Bu-Attifel and Bouri fields, and it is a partner in the Block NC174 Elephant field, which is expected to start up in 2001 and have peak output of 150,000 b/d of oil. Agip expects its share of output from the Blocks NC41 and NC169 developments to total 200,000 boed.
"The new project is in line with ENI`s strategy to consolidate its role in the Mediterranean basinellipse," said the firm.
