Category Archives: Gas

Libya: NOC statement on status of NC-96 and NC-97 concessions (Wintershall)

NOC and Wintershall signed a memorandum of understanding (MOU) on August 26, 2010, to extend Wintershall’s 50-year concession for areas NC-96 and NC-97 and to convert to EPSA IV terms, in line with other foreign operators in Libya.

Wintershall’s concession otherwise expired on March 27, 2016. Zuetina port, from which NC-96 and NC-97 production is exported, was blockaded by units of the Petroleum Facilities Guards at that time. Wintershall restarted production on September 16, 2016, when force majeure was lifted at Zuetina, and shut production on March 7, 2017. In the interim period, NOC and Wintershall held a number of meetings to discuss implementing the 2010 MOU. Wintershall chose not to honor its commitments and was not included in the latest loading plans as a consequence.
If Wintershall kept to its agreements, including seeking a resolution by arbitration, production and exports could continue. Instead, it has tried to interfere in Libyan internal politics and to take advantage of the weakness of the state.
10 May 2017
Tripoli

Libya: NOC Discover New Gas/Condensate Offshore Libya

National Oil Corporation (NOC) and ENI North Africa Libya (Operator), being partners in an Exploration and Production Sharing Agreement (EPSA IV) signed in June 2008, announce a New Gas/Condensate Discovery in Contract Area ‘D’ (NC41) in Tripoli-Sabratah Basin, Offshore Libya.

The discovery exploration Well B1-16/3 is located approximately 140 km from the Libyan Capital Tripoli City and 5 km to the North of the producing Bahr Essalam Gas Field. The well was drilled in water depth of about 150 m and reached a total depth of 9780 feet (2981 meter).

The production test results are summarized in the following Table:

 

Libya: National Oil Corporation warns oil market against illegal contracts (Statement)

 National Oil Corporation (NOC) today reasserted that it is the only body authorized by United Nations resolutions to export crude oil and oil products from Libya.

 NOC confirmed that term contracts covering the entire production for 2017 for all Libyan crude grades have already been entered with 16 international oil companies. Only these companies are legally contracted to buy Libyan crude oil and to charter shipping tankers from Libyan ports for 2017. The companies are the following: ENI, Total, OMV, Repsol, Rosneft, LukOil, Cepsa, Saras, API, Glencore, Socar, Unipec, Vitol, Gunvor, Petraco, and BB Energy. 

 NOC identified a group of individuals abusing the status of political division in Libya by entering into illegal contracts with unknown or unqualified companies. 

NOC said these individuals, and others associated with them, have offered Libyan crude oil for sale at huge discounts below the Official Selling Price (OSP). if implemented the losses to the state of Libya of these contracts would be hundreds of millions of dollars in lost revenue. 

NOC warned the maritime market and crude oil market that these contracts are illegal and that entering into them may lead to serious legal consequences and financial losses. NOC does not accept responsibly or liability whatsoever for any loss or damage incurred as the result of entering into contracts with unauthorized individuals. 

NOC also confirmed that all crude oil exports are paid by documentary letters of credit, and at the Official Selling Price (OSP) without any discount.

 NOC – Tripoli 26.03.2017

 

Libya: NOC’s Statement to Soon Lift ‘Force Majeure’ Following Opening of Oil Ports in East Libya

Libya’s National Oil Corporation today said it would begin work immediately to restart exports from Oil Crescent ports.

“We welcome statements from the Libyan National Army allied with House of Representatives and the president of the HoR, Aguila Saleh, that the ports should be placed under NOC’s control,” said NOC chairman Mustafa Sanalla. “ our technical teams already started assessing what needs to be done to lift force majeure and restart exports as soon as possible.”

“As Libyans we have a common interest in keeping our oil flowing. By raising oil production and exports we can reduce our budget deficit and pay for vital services.” 

“We can raise production to 600,000 b/d within four weeks and to 950,000 b/d by the end of the year from around 290,000 b/d at present. However, this is dependent on receiving essential funds from the budget and on the Oil Crescent ports and the closed pipelines in the southwest being opened and kept open.”

“I hope this marks the beginning of a new phase of cooperation and coexistence between Libya’s factions, as well as an end to the use of the blockade as a political tactic.”

Under a unity agreement signed in July, ‎NOC recognizes the Presidency Council as the highest executive authority and the House of Representatives as the highest legislative authority. A central aim of the agreement is to ensure that Libya’s oil wealth is used for the benefit of all Libyans.

all exports from Libya must be according to UN Security Council resolution 2259.

Tripoli 13/09/2016

Libya: NOC Agree to Unify – Offficial Press Release

Mustafa Sanalla, chairman of the National Oil Corporation of Libya, and his counterpart appointed by the government in Bayda, Nagi el-Maghrabi, today agreed to unify the National Oil Corporation.

Mr Sanalla will continue as NOC chairman and Dr el-Maghrabi will join the NOC board.

“There is only one NOC, and it serves all Libyans,” said Mr Sanalla. “This agreement will send a very strong signal to the Libyan people and to the international community that the Presidency Council is able to deliver consensus and reconciliation. I’m sure it will now build on this success to bring unity and stability to other government institutions.”

“We made a strategic choice to put our divisions behind us and to unify and integrate NOC as directed by the House of Representatives and the Chairman and Members of the Presidency Council,” said Dr el-Maghrabi. “There is no other way forward. This is for the good of Libya.”

The agreement recognizes the Presidency Council as the highest executive authority in the country, and the House of Representatives as the highest legislative authority. NOC will submit periodic reports to committees established by both authorities.

In the agreement, NOC undertakes to ensure Libya’s oil wealth is for all Libyans and all Libyans must benefit from it without exception, in accordance with the guidance issued by the House of Representatives and its President.

The two sides jointly agreed a unified budget for the remainder of the current financial year, and took steps to address any imbalances resulting from the period of division.

The agreement makes infrastructure rehabilitation a priority, especially in the city of Benghazi in preparation for the relocation of NOC’s new headquarters. The parties expressed a strong desire that the NOC board should meet regularly in Benghazi in the interim if security conditions permit.

2 July 2016

Libya: Technip Press Release following its $500 million oil platform deal

Paris, May 31, 2016

Technip awarded major natural gas field development contract in Mediterranean Sea

Technip has been awarded a major(1) contract to develop the Bahr Essalam, Phase II development in the Central Mediterranean Sea.

This natural gas field development, which is operated by Mellitah Oil & Gas B.V. Libyan Branch, a consortium between National Oil Corporation and ENI North Africa, will be tied back to the Sabratha platform, which is situated approximately 110km off the Libyan coast in a water depth of approximately 190m.

From concept to project delivery, Technip will build on its integrated model combining its subsea and offshore capabilities. The overall scope of work will see Technip perform the overall design, detailed engineering and deliver the project management, as well as procurement, installation, tie-ins, pre-commissioning and commissioning. This will be associated with the provision of a gas gathering system, comprised of production pipelines, subsea isolation valve (SSIV), umbilicals(2), as well as extensive diving and installation campaigns. It will also include modifications to the Sabratha platform regarding the topsides. All offshore mobilisations will be undertaken from Malta.

Offshore installation is scheduled for the second half of 2017 through to the second half of 2018. A range of vessels from the Group’s fleet will be involved, including Deep Energy Pipelay vessel, Deep Arctic Diving Support Vessel, and G1200 S-Lay vessel.

Thierry Pilenko, Chairman and CEO, commented: “We are proud of this contract award, which is a strong recognition of Technip’s broad capabilities across a variety of areas. It is also testament to our team’s ability to adapt to the challenging market environment, and to provide solutions that still enable field developments. We very much look forward to working with Mellitah to safely and successfully deliver this large project, by leveraging our strong know-how and experience in high-quality product manufacturing and subsea installation.”

In addition, Technip confirms the renewal of the charter for its Skandi Vitoria vessel in Brazil and the expansion of its contracted work outside backlog also through a large contract.

Fast facts

The gas gathering system provided by Technip will be comprised of:

– 13km 20” production pipeline with a 4” piggybacked service line, 11km 10” / 14” pipe-in-pipe production line with a 4” piggybacked service line and 10km 8” / 12” pipe-in-pipe production line.

– 2 subsea isolation valve (SSIV) structures and 2 subsea isolation valve umbilicals(2).

– Trenching and backfilling.

– An extensive diving campaign to install a large number of spools as well pre-commissioning and commissioning activities.

– Installation of 4 company provided structures, 26km of company provided umbilicals.

– Modifications to the Sabratha platform.