Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, Dec. 8 -- The Libyan government, hit by budget constraints and by current market conditions, has announced a delay of up to 5 years in its previously released plans to raise its oil output capacity.
“Our plan was to reach 3 million b/d by 2012, but because of the market conditions, as well as budget constraints,” we delayed it to 2017, said Shokri Ghanem, chief executive officer of Libya’s state-owned National Oil Corp. (NOC).
"By 2016-17, we can reach the 3 million b/d target, but we need more budget allocations," Ghanem said on the sidelines of a meeting of oil ministers of Arab countries belonging to the Organization of the Petroleum Exporting Countries.
Ghanem said Libya’s present production capacity is “almost 2 million b/d” and that his country is meeting its OPEC quota of 1.5 million b/d.
Meanwhile, Ghanem confirmed earlier reports that Hess Corp. has discovered “quite a big filed” of natural gas in the Gulf of Sirte, where it operates together with NOC.
According to Hess, its fully owned subsidiary Hess Libya Exploration Ltd. carried out a successful test of its discovery well A1-54/01 in the Mediterranean off Libya.
It said the A1-54/01 well was originally drilled in the Arous Al-Bahar prospect in 2008 and found hydrocarbons in several intervals with a combined gross section of about 500 ft.
Hess recently reentered and perforated the well over a 300-ft carbonate interval and performed a drill stem test.
The well flowed 27 MMscfd of “good quality” gas and 533 b/d of condensate through a 52/64-in. choke, Hess said, adding that the test was performed using the sixth-generation dynamically positioned Stena Forth drillship.
After operations on this well, Hess said the Stena Forth will return to complete the drilling of an appraisal well, A2-54/01, which lies 7 miles northwest of the discovery well.
Well A1-54/01 was drilled in 2,807 ft of water in Area 54, which is 35 miles offshore in the Sirte basin.
The Hess unit holds a 100% working interest in Area 54, which it operates under an exploration and production-sharing agreement with NOC.
Contact Eric Watkins at [email protected].