Italian multinational oilfield services company Saipem has pre-qualified to carry out EPCC works for Production Platform E – part of the $8 billion Structures A&E Development Project, which aims to increase Libya's gas production.
Led by Mellitah Oil & Gas – a joint venture between Italian multinational Eni and Libya’s National Oil Company – the Structures A&E project aims to increase gas production to supply the Libyan domestic market and exports to Europe, targeting 750 million cubic feet of gas per day (mmcf/d) by 2026.
Mellitah Oil & Gas launched the invitation for pre-qualification for the Engineering, Procurement, Construction, Hook-up, Commissioning and Start-up (EPCC) of Production Platform E earlier in 2024.
Structures A and E gas fields, part of the development project, lie in Contract Area D, former NC41 area, offshore Libya.
A-Structure is located in the in the central-western part of area D, approximately 80 Km from Libyan coast, where water depth is ranging between 95 and 105 m. E-Structure is located in the central-eastern part of the Area D, about 130 Km far from the Libyan coast, in a water depth ranging from 205 to 235 m.
“We are committed to Libyan projects. We have pre-qualified for Platform E, which will give Libya one of the biggest production platforms in the Mediterranean. It will be challenging – it’s a more than 60,000-ton platform, with one of the largest jackets in the industry,” said Giorfio Elia, Managing Director – North East Africa & Cyprus for Saipem.
The announcement was made during an oil and gas-focused roundtable at the Libya-Italy Roundtable and VIP Networking Event, which outlined the country’s current exploration and development prospects.
In addition to the Structures A&E Development Project, Eni highlighted several major gas projects under development, including the Bouri Gas Utilization Project – which will recover hydrocarbons from associated gas from two platforms installed on the Bouri field, accompanied by a carbon capture facility – and another 100-mmscf/d gas production project set to come online in 2025.
“We are committed to providing enough gas to Libya to meet domestic needs and continue exporting, while at the same time reducing our carbon footprint,” said Martina Opizzi, Head of North Africa & the Levant Region for Eni, adding that the operator has “already signed some contracts” for all three projects.
In addition to gas monetization, Libya is prioritizing enhanced oil recovery to maximize output from mature oil fields and brownfield assets. As a result, the country is looking to international private sector partners to implement advanced technologies and carry out upgrades and maintenance works to boost recovery rates and stabilize production.
Looking ahead, challenges in fiscal, political and contractual stability remain for Libya, which continues to face long project lead times that impede foreign investment and the timely completion of ongoing projects.