Wintershall, other firms crank up Libyan oil output

Wintershall Holding GMBH, which shut down its Libyan desert oil fields in February for security reasons, has resumed production as agreed with Libyan National Oil Corp. Wintershall joins several other international oil companies that have recently resumed operations in the war-torn country.

Wintershall produced 100,000 b/d from eight fields prior to the outbreak of civil war. “We reached a production level of about 20,000 b/d shortly after beginning operations,” said Wintershall Chief Executive Officer Rainer Seele.

The German firm said installations at its fields, which lie on the C96 and C97 blocks 1,000 km southeast of Tripoli in the Sirte basin, were undamaged, having been guarded and maintained by Libyan personnel. Its transportation systems also, Wintershall said, are thought to be intact.

This optimistic view was shared by Total SA Chief Executive Christophe de Margerie, who said his firm’s return to Libya was “all quicker than expected” in terms of logistics and oil facilities.

Claudio Descalzi, head of exploration and production for Eni SPA, meanwhile, said, “We expect 90-95% of our equity oil production to be restored by the end of the first half next year.”

Libya’s Arabian Gulf Oil Co. said it expects to produce oil at its full capacity of 425,000 b/d by February 2012, after it resumes production at some fields and boosts output at others.

Currently, production has been delayed by about a week at the firm’s Hamada and Beda fields due to logistical and technical problems, according to a company spokesman. The two fields, which each produce about 10,000 b/d, had been expected to resume output on Oct. 17.

“We will reach full capacity in the fields when we overcome all the problems, some of which are minor,” said the spokesman, who said there were leaks in branch pipelines and some missing equipment but that the operation equipment was left intact.

Speed, cost, timing

Debate continues over the speed, cost, and timing of Libya’s recovery to reach the prewar production level of 1.8 million b/d.

“Oil production will come back to the previous level in 15 months or less,” said Abdalla Salem El-Badri, secretary general of the Organization of the Petroleum Exporting Countries. “There is not much damage to the oil facilities and companies are really moving fast,” he told delegates at the Oil & Money Conference 2011 in London last week.

However, the International Energy Agency adopted a more cautious approach, saying, “So far, there are still many conflicting reports about the state of the fields and infrastructure which need to be clarified.”

In addition to the state of fields and transportation systems, Libya also faces delays due to the need to bring skilled laborers back to the country, a point stressed by Samuel Ciszuk, an analyst at IHS Global Insight.

“Libya's reliance on tens of thousands of foreign oil engineers, geologists, and technicians, mostly from neighboring Arab states, south Asia, and China, will be an obstacle to a quick recovery,” said Ciszuk, adding, “Attracting these workers back will invariably take time.”

Looking farther down the road, the head of France’s trade delegation Ubifrance told Reuters that it would cost an estimated $30 billion to increase Libya’s oil production to 3 million b/d by 2015.

“We estimate that today there are $30 billion worth of investments in hydrocarbons needed between 2011-15 to take Libyan oil production to 3 million b/d,” said Christophe Lecourtier, Ubifrance director general, on a visit to Tripoli.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

BHI: US oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

BHP, Woodside move to decommission Stybarrow field

07/01/2015 BHP Billiton Ltd. and Woodside Petroleum Ltd. have started preparations for decommissioning of the Stybarrow group of oil fields in production lice...

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...

Statoil to suspend Scarabeo 5 drilling rig

07/01/2015 Due to overcapacity in its rig portfolio, Statoil ASA said it has decided to suspend Saipem’s Scarabeo 5 dynamically position drilling rig after it...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...

USGS: Water usage for fracturing varies widely across shale plays

07/01/2015 The volume of water required to hydraulically fracture wells varies widely across the country, according to the first national analysis and map of ...

Forum extends study of subsea integrity

06/30/2015

Work by an industry forum called SURF IM Network, which studies oil and gas subsea integrity management, has been extended by 3 years.

White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST



On Demand

Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected