Uchenna Izundu
International Editor
LONDON, Feb. 18 -- BP PLC plans to drill its first onshore well in Libya's Ghadame basin in 2010, assuming it can secure the necessary rigs, said BP Exploration Pres. Libya Peter Manoogian at International Petroleum Week in London.
BP will invest more than $2 billion in its work program, which will include the drilling of 17 exploratory wells.
Manoogian said he remains "very optimistic" about onshore development, as the company knows the basin well. "We are targeting gas accumulations, and if we find any, then production could start in 2018."
Seismic acquisition will begin in the third quarter. Although the company's strategy in North Africa is gas, "if we find oil that's not a bad thing," it said, adding, "We will monetize the oil if it's found, and that is covered in our contract with [Libya's National Oil Co.]"
Last year BP and partner Libya Investment Corp. signed an agreement with NOC to explore 54,000 sq km of the Ghadames and offshore frontier Sirt basins (OGJ Online, June 1, 2007).
If hydrocarbons are found, offshore production could start in 2020, Manoogian added. Sirte is challenging, however, because it is in deep water with seismic imaging issues, and it is 300 km from the nearest well.
With the Ghadames basin holding tight gas, there are complex reservoirs, and BP will utilize advanced drilling and completion technology during its exploration program.
NOC, through an aggressive offshore and frontier exploration program, wants to boost Libya's oil reserves to 20 billion boe under a plan covering 2005-15. NOC expects to increase production to 3.5 million b/d by 2020 by encouraging the drilling of at least 50 wildcats/year and acquiring at least 4,000 sq km/year of 3D seismic data and 10,000 km/year of 2D seismic data.
Manoogian said: "We think that partnerships between international oil companies and national oil companies are desirable. The transparency in regulation and its proximity to Europe makes Libya an attractive investment."
But fierce competition between IOCs in accessing new hydrocarbon resources led them to reduce their share of benefits in bidding for acreage under Libya's recent gas licensing round, Manoogian said. "We can't say that was imposed by the NOC. IOCs have to take bigger risks because of the competition for resrouces."
Contact Uchenna Izundu at [email protected].