National Oil Corporation (NOC) and Eni announce that Mellitah Oil & Gas, an operating company jointly owned by Eni and NOC, have started production from the first well of the Bahr Essalam Phase 2 offshore project just three years after the Final Investment Decision (FID ). Two additional wells are expected to go into production within about a week, while another seven wells will go into production by October.
Phase 2 of the project completes the development of the largest gas field in production in the Libyan offshore, increasing the production potential by approximately 400 million cubic feet of standard gas per day (MMSCFD). Phase 2 will be completed between September and October, bringing total field production to 1.100 MMSCFD.
Bahr Essalam, located about 120 kilometers northwest of Tripoli, contains over 260 billion cubic meters of gas in place. It is sent via the Sabratha platform to the Mellitah ground treatment plant where it is collected, compressed and sent mainly to the Libyan national network.
The President of the Presidential Council and Prime Minister of the Government of National Accord of Libya, Fayez Al-Saraj, attended the opening ceremony and thanked the workers of NOC, Eni and Mellitah Oil & Gas for their efforts in the development of the oil sector in Libya.
Al-Saraj commented: "The start-up of the 2 phase of the Bahr Essalam offshore project will definitely add value to the national economy. In the past we have lost huge investment opportunities due to lack of budget. However, today we are committed more than ever to encouraging investment in the oil sector and to guaranteeing promising opportunities for international giants that respond to the interests of these partnerships and create growth that gives new hope to young Libyans. Therefore, all the parties must intensify their efforts to have deeper understanding and be more willing to compromise in the interest of the young people of this country who are the real protagonists for its stability ".
The president of NOC, Mustafa Sanalla, added: "NOC is committed to ensuring and increasing the production of gas to power Libyan power plants. This will help the development of the internal market and reduce the costly imports of liquid fuels. This strategy will free up significant financial resources; essential, given the enormity of the challenges facing the whole country. Eni is a demonstration of the trust that the international oil companies have in NOC and the success that legitimate partnerships can offer to all Libyans ».
Eni's CEO Claudio Descalzi commented: "Bahr Essalam is the result of the long-standing relationship between NOC and Eni and represents an important milestone in guaranteeing greater security of energy supply to Libya. The project further demonstrates the trust and recognition that Eni has in NOC as the only legitimate national oil company; the one with which we will continue to work exclusively in the country.
The start of production, with excellent time-to-market in such a challenging context, is an extraordinary achievement for Mellitah Oil & Gas. We are proud to say that the start of phase 2 of Bahr Essalam for the next 15 years will play an important role in providing Libya with the gas it needs to fuel the country's recovery ”.
Eni is present in Libya from the 1959, where it currently produces about 320.000 barrels of oil equivalent per day.