Libya’s plan to nearly double its oil production to 3 million b/d by 2010-11 is off to a rousing start with successful licensing rounds and the return of US operators exiled in 1986.
Operators evidently are not yet at the point of kicking off drilling programs on newly won or reoccupied acreage. Only 8-9 rotary rigs have operated in Libya for the past several years, and no change is apparent in the most recent months. The land rig market in North Africa is reported to be tight (OGJ Online, Jan. 11, 2006).
Libyan officials expressed hope late last year that operators will drill 50 wildcats/year in the next 5 years and undertake large seismic programs (OGJ, Oct. 24, 2005, p. 39). A tightness of land rigs could retard drilling schedules. Three onshore basins-Sirte, Ghadames, and Murzuk-produce most of Libya’s oil. If oil prices remain high, winners of the license blocks could carry out significant exploration in several nonproducing and low-producing basins.
Returning companies
Occidental Petroleum Corp. and the Oasis group of companies were resuming operation of their assets in the Sirte basin, operated by Libya National Oil Corp. in the interim.
Oxy, which took over its historical Libyan assets in July 2005, has a net working interest in about 130,000 sq km including those assets and the acreage it won in licensing rounds. The properties have significant potential for future growth from enhanced oil recovery projects, the company said.
In late 2005 Oxy said the properties would contribute 22,000 b/d to the company’s yearend 2005 exit rate. Oxy lifted its first Libyan crude oil in late September.
The company said the work program is proceeding on the nine exploration blocks it was awarded in 2005. Oxy is the country’s largest land holder.
The Oasis group, which signed the agreement with Libya in late December 2005, operates 13 million acres that produce 350,000 b/d of oil (OGJ, Jan. 9, 2006, Newsletter). Interests are ConocoPhillips and Marathon Oil Corp. 16.33% each, Amerada Hess Corp. 8.16%, and LNOC 59.16%.
ConocoPhillips said the lands contain sizable undeveloped oil and gas resources. ✦