Libya oil project shut down after just days of operation
27 March 2025
The new early production facility (EPF) at Libya’s North Hamada field was brought online for several days in early January before being shut down, according to industry sources.
It is unclear exactly why the facility was taken offline.
One source said: “Installation and commissioning was completed in early January this year and the project was brought online, only to be taken offline after a couple of days of operation.
“Everything worked perfectly and the producing wells produced oil. The pipeline was connected. There were no problems from a technical perspective.”
Industry sources believe it could be brought back online sometime in the next few months.
Last year, Nafusah Oil Operations, a joint-operating company formed by Libya’s state-owned National Oil Company (NOC) and Indonesia’s PT Medco Energi, was under a lot of pressure from NOC to bring the project online quickly, according to industry sources.
NOC was putting pressure on Nafusah to bring the project online before September 2024, a target that was missed by several months.
The project experienced significant delays before the September deadline was set by NOC.
Once the EPF is reconnected and operational for an extended period, it will lead to the first commercial oil production from the field, which is located in exploration area 47 in the Ghadames basin.
On 28 August 2023, Nafusah Oil Operations began test production of 1,500-2,000 barrels a day (b/d) from the well, which was initially drilled in late 2021.
The EPF development project has an estimated investment value of about $60m-$70m and Nafusah is targeting oil production of 10,000 b/d via the facility.
Under the contract model being used, Nafusah does not need to pay high upfront fees for the development project.
According to the original plans, it was to lease the EPF facilities from SLB for 36 months, after which ownership would be transferred to Nafusah.
When operational, the EPF units will separate produced crude oil from water and gasses.
In January 2024, Schlumberger SLB announced the contract award for the North Hamada field in its full-year earnings report.
It said that the contract used its “Production Express rapid production response solutions” and the project will be capable of processing up to 10,000 barrels of fluid a day.
It also said that the contract was “a three-year contract for the engineering, procurement and commissioning (EPC), as well as startup and operations of an early production facility … located in North Hamada area 47”.
It added: “The Production Express design is a fit-for-purpose mobile and efficient solution that will allow Nafusah to acquire additional reservoir information and fast-track hydrocarbon production with a reduced [capital expenditure] over the additional EPC project’s design while preserving cash flow and continuous well deliverability.”
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