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Saipem S.p.A SAPMF, an Italian oilfield services firm, has pre-qualified for the Engineering, Procurement, Construction, Hook-up, Commissioning and Start-up (“EPCC”) work for a production platform offshore Libya. The EPCC work is associated with the Production Platform E, which is a part of the Structures A&E Development Project (worth $8 billion). The project is intended to increase gas production in Libya.
Details of the Structures A&E Development Project
The project is headed by Mellitah Oil & Gas, which is a joint venture between Eni and the National Oil Company of Libya. The invitation for pre-qualifying for the EPCC work at Production Platform E was rolled out by Mellitah Oil & Gas earlier this year. The Structures A&E Development Project is aimed at ramping up gas production in Libya to supply the country’s domestic needs and exports to European markets. The development project is aimed at increasing the production to approximately 750 million cubic feet of gas per day (mmcf/d) by 2026.
Challenges Encountered by Saipem
Saipem stated that by pre-qualifying for Production Platform E, the company is set to construct one of the largest production platforms in the Mediterranean region. However, SAPMF noted that the project could prove to be challenging due to its size, which is more than 60,000 tons. It would also boast one of the largest jackets in the entire industry.
Structures A and E gas fields, which are a part of the development project are located in Contract Area D, offshore Libya. The region was erstwhile called the NC41 area. Structure A is situated almost 80 km from the Libyan coast where the water depths lie in the range of 95 and 105 metres. Structure E is situated approximately 130 km off the Libyan coast at water depths of 205 to 235 metres.
Eni’s Development Initiatives
Apart from the Structures A&E Development Project, Eni has mentioned other major gas projects in the region. These projects are currently under development. Among these, Eni has highlighted the Bouri Gas Utilization Project, which is aimed at recovering hydrocarbons from the gas extracted through the two platforms installed on the Bouri field. This project will also include a carbon capture facility, which should reduce the environmental impact of this project. Eni mentioned another gas project with a capacity of 100 million standard cubic feet per day. This project is scheduled to come online in 2025.
Along with raising its gas production, Libya is also looking to improve oil recovery from mature fields. This should enable the nation to maximize production from mature and brownfield assets. In particular, Libya is seeking to partner with international private-sector players who can leverage advanced technologies to increase recovery rates. The country plans to conduct maintenance and upgrade these aging assets to stabilize production from them.