Eni, NOC Start Libyan Field Output

Libya's National Oil Corporation (NOC) and Italian producer Eni have started up production from the first well of the offshore Bahr Essalam Phase 2 project, Eni said July 5. This comes just three years after their equally-owned joint venture, Mellitah Oil & Gas, took its final investment decision, Eni said. Two further wells will begin production within a week. An additional seven wells will come on-stream by October 2018.

Phase 2 of the project completes the development of the largest offshore producing gas field in Libya, increasing production potential by 400mn ft³/day, bringing the total field production to 1.1bn ft³/day by October.

Bahr Essalam, about 120 km northwest of Tripoli, contains over 260bn m³ of gas. This is delivered through the Sabratha platform to the Mellitah onshore treatment plant before principally being used to supply the national network.

NOC chairman Mustafa Sanalla said: “NOC is committed to guaranteeing and increasing gas production in order to supply Libyan power plants. This will support the development of the domestic market and reduce costly liquid fuel imports. This strategy will free up significant financial resources; essential given the enormity of challenges across the country. Eni have demonstrated the confidence that international oil companies have in NOC, and the success that legitimate partnerships can deliver for all Libyans."

Eni CEO Claudio Descalzi commented: "The project... demonstrates the trust and recognition Eni has in NOC as Libya’s sole legitimate oil corporation; one with whom we will continue to work exclusively in-country. The start of production – delivered in an impressive time-to-market, and in a challenging environment - is a significant achievement for Mellitah Oil & Gas. We are proud that Phase 2 will play an important role in supplying Libya with the necessary gas to fuel the country's recovery over the next 15 years.”

The two companies also supply gas to Italy from the Bahr Essalam field among others, through the sub-sea Green Stream pipeline, which can carry 8bn m³/yr from Mellitah to Gela in Sicily.