Libya Strategic Report Booklet
Libya Strategic Report Booklet
Libya Strategic Report Booklet
It
contains 438 pages and includes data on over 80 developed and undeveloped fields
along with details of opportunities with pipelines, refineries and infrastructure.
Libya
Oil and Gas Industry
Strategic Report
Contents, Example Field, List of Figures, List of
Tables and Index only
By
March 2014
Seventh Edition
Our Product Clients
This report charts Libya’s oil and gas potential and is a must for anyone interested in engaging in
its oil and gas sector.
Libya's proximity to Europe, its sweet high quality crude oil, its significant gas reserves make
this report a must not just for oil and gas professionals but also for those interested in assessing
Libya's strategic impact on hydrocarbon supplies to the EU and the USA.
This issue includes the results of the licensing awards made since lifting of sanctions and
exploration drilling conducted in license areas.
This Report is the Seventh Edition of Bayphase's Libya Oil and Gas Industry Strategic
Report. It provides a comprehensive review of Libya’s Oil and Gas Industry, including these
elements:
Though the Report presents an industry wide assessment its main focus is Libya's upstream oil
and gas fields and their production facilities. Here a basinal view of Libya has been taken with
the country catergorised in to its six main sedimentary basins:
- Sirte
- Ghadames
- Murzuk
- Offshore/Tripolitania
- Cyrenica
- Kufra
The Report is supplied with a folded copy of the latest edition of our Libya Exploration and
Production Two Map Set.
The report provides analysis and enhanced data sets on over 80 oil and gas fields; some
currently in production - others undeveloped awaiting investment.
The report also examines licensing and Exploration Potential in all of Libya's sedimentary
basins to provide an assessment of the investment likely to be expended in exploration activities
and the reserves increments that could potentially result.
For one year following, purchasing customers will be supplied with any updates made to the
report.
From an Oil Reserves Perspective the report charts Libya's proven plus probable potential
remaining reserves of 67 Billion bbls.
From a Gas Reserves Perspective the report charts Libya's proven plus probable potential
remaining reserves of 89 Trillion Standard Cubic Feet
From an Investment Perspective the report shows how between 46 and 81 Billion Dollars of
investment will be required by Libya's oil and gas industry over the next 15 years to unlock its
production potential.
We have developed a companion publication to this Report that analyses the economics
associated with each of the fields we have identified here - see the Libya Fields Financial
Report web page for more details.
Report History:
- Paper Version of our current Libya Oil and Gas Industry Strategic Report
- Free Searchable CDRom of our current Libya Oil and Gas Industry Strategic Report
- Paper Version (Folded) of our current Libya E&P Three Map Set
The analysis carried out on the 80 fields is indicated by the field sample provided below:
1.1.1.1.1.1 Hofra
This field is also known as Jofra or Al Hufrah. This section refers to both the Hofra and Dahra
East Fields, as they are part of the same structure.
The Hofra field was discovered by Mobil in 1958, in concession 11. In 1989 Oasis discovered
the Dhara East (F) oil pool in concession 32, which subsequently proved to be part of the same
structure as Mobil’s Hofra discovery. It is believed that Oasis and Mobil developed their parts of
the field independently, with Oasis’ Dahra East coming on stream in 1962 and Mobil’s Hofra a
year later, in 1963.
There are three reservoir intervals present in the Hofra Field, all of which are Paleocene
Carbonates, separated by shale intervals (Rabia Shale acts as a cap for the Upper Satal, Khalifah
Shale seals the Az Zahrah Limestone and the Harash/Khayir Shale caps the Zaltan Limestone).
The Upper Satal and Az Zahrah Limestones extend over the whole area of the field and are 130m
and 90m thick respectively. The Az Zahrah accumulation also contains a gas cap.The Zaltan
Limestone is represented by high-energy facies only on the eastern side of the Dahra-Hofra
High, and shales out rapidly to the West. It has a thickness of 60 to 100m.
In addition, the field also contains two minor gas bearing intervals.
The trap is structural for the Upper Satal Member, being a low relief anticline oriented
northwest. However, the other two intervals are stratigraphic traps, with the Az Zahrah
Limestone pinching out to the West and the Zaltan Limestone shaling out in the same direction.
The hydrocarbons are believed to have been sourced from the Sirt Shale, likely from the
Maradah Trough kitchen. Oils are oversaturated, and gas caps are present. The oil initially in
place is estimated at 2.8 billion barrels, while the intial reserves were 621 million barrels.
Over 170 wells have been drilled on the structure, but most are now shut in. Water is injected by
three wells to support the reservoir pressure. The field also produces gas from five wells.
Key Field Data
Table 1.1: Hofra Key Field Data
Parameter Value
Discovery Date 1958, 1959
On-stream Date 1962, 1963
Oil (Million Barrels) 621
Original
Recoverable Gas (Billion Cubic Feet) 310.5
Reserves Oil (Million Barrels) 250 (estimate)
Remaining
Gas (Billion Cubic Feet) 125 (estimate)
Prospective Resources (Upside Oil (Million Barrels) 50
Exploration Potential) Gas (Billion Cubic Feet) -
Oil (Barrels per day) 4,000
Current
Gas (Million Standard Cubic Feet per day) 2 (estimate)
Production
Oil (Barrels per day) 50,000 (estimate)
Potential
Gas (Million Standard Cubic Feet per day) 25 (estimate)
Upper Satal Member
(Danian, Paleocene); Az
Zahrah (Dahra)
Producing Horizon(s)
Formation (Paleocene);
Zaltan Limestone
Geology (Paleocene)
Rock Type(s) Limestone (all intervals)
Reservoir Depth (Feet) 2,660 – 2,700
Gross Rock Volume (Million Cubic Feet)
Reservoir Thickness (Feet)
Porosity (%) 20 – 25
Gravity (º API) 29.2 – 47
Sulphur Content (wt %)
Oil
Pour Point (°C) 5
Wax Content (wt %)
Fluid Properties
Gas Oil Ratio (Standard Cubic Feet/barrel) 500
Hydrogen Sulphide Content (mol %) 0.6
Gas
Carbon Dioxide Content (mol %) 1.6
Molecular Weight
Number of Producers 5 (estimate)
Existing
Subsurface Number of Gas Injectors -
Facilities
Number of Water Injectors 3
Table 1.1: Hofra Key Field Data
Parameter Value
Separation Capacity (bpd) 80,000
Surface Compression Capacity (MMscfd) 50 (estimate)
Acid Gas Treatment Capacity (MMscfd) -
Commercial Data
The field is operated by Veba Oil Operations B.V., a joint venture between Petro-Canada (49%
interest) and the National Oil Corporation (51% interest). The contract is to expire on 30th
December 2015.
Table 1.2: Hofra Commercial Data
Parameter Value
Contract Type Joint Venture
Contract Effective Date
Operator Veba Oil Operations
Petro-Canada 49
NOC 51
Equity (%)
Investment Requirement
The operator has yet to publicise their plans for the future redevelopment of this field. Our view
is that from a purely technical standpoint the field could benefit from additional investment.
Whether this investment is conducted solely by Petro-Canada or with outside assistance has yet
to be decided.
Below we present what we believe would be a probable redevelopment plan given the current
status of the field. In our view redevelopment would be conducted in a number of stages:
• Work over and re-completion of a significant proportion of the existing producers to achieve
improved reliable recovery from areas currently in production.
• Refurbishment of existing production equipment to provide a reliable production base with this
followed by a production expansion to allow for additional production from the existing field
and incorporation of 1 new discovery.
• Implementation of a seismic survey and assessment of the field to gather data to plan further
redevelopment activities.
• Implementation of appraisal drilling and assessment of data to plan further redevelopment
activities.
• Implementation of infill drilling targeting poorly drained areas of the field identified by seismic
and other surveys.
• Implementation of exploration drilling to test targets identified by seismic survey.
• Development and tie-back of 1 assumed successful discovery with reserves of 50 million
barrels made during the exploration phase.
The program outlined above is one that might typically be adopted in the redevelopment of any
old large producing field. In addition there may well be an opportunity for tertiary recovery on
this field though this would appear to be a distant target outside of our timescale of
consideration.
Table 1.3: Hofra Redevelopment Investment Summary
Project Rationale Time Cost Estimate
Frame (Million $)2
1
(Years) High Low
Subsurface
Work Over and Re- Work over and re-complete selected producers to
complete existing boost production from field areas currently in
1-5 15.9 29.4
producers and injectors production and to achieve reliable production from
the existing wells; Number of wells: 5
Seismic Survey Implementation of seismic survey over field area
to assess redevelopment options and potential 2–4 21.2 39.2
exploration targets. Includes a 600km2 3D Survey.
Infill Drilling Drilling of producers to produce from field areas
currently not in production; Number of Producers: 2–3 42.4 78.4
10
Exploration Drilling Drilling of exploration wells to test exploration
4–6 21.2 39.2
targets; Number of Wells: 2 Exploration
Appraisal Drilling Drilling of appraisal wells. Number of Wells: 2. 6–8 10.6 19.6
Development Drilling Drilling of producers to produce from assumed
Discovered Field discovery with 50 million barrels recoverable; 7–9 26.5 49
Number of Producers: 5.
Subtotal 138 254.8
Surface
Surface Facilities Refurbishment of existing facility to maintain
Rehabilitation stable production includes replacement of
1-2 31.8 58.8
equipment, control systems and material where
necessary.
Surface Facilities This includes installation of well pads, gathering
Expansion and flow lines, inter field pipelines and modifications
Incorporation of 1 to the existing production system to process 4-9 233.5 431.2
Discovery production from the existing field and the assumed
discovery
Subtotal 265.3 490
Total 403 745
1
Time frame is our expectation of when the investment will be implemented based on announcement made by
operators and in the case of potential investments identified during the course of this study our assessment of
potential timescale. An investment with the time frame 2 – 5 is expected to start 2 years following date of issue of
this report and to be complete within 3 years.
2
The cost ranges reflect the uncertainty associated with the actual work scope that will have to be implemented.
1
Table of Contents
Table of Contents ............................................................................................................................................................... 3
1 Executive Summary ...................................................................................................................................................... 11
1.1 OIL AND GAS INVENTORY ........................................................................................................................................ 11
1.2 OIL AND GAS INDUSTRY .......................................................................................................................................... 11
1.2.1 Overall ............................................................................................................................................................. 11
1.2.1.1 Status ........................................................................................................................................................................... 11
1.2.1.2 Investment Requirements ............................................................................................................................................ 17
1.2.2 Upstream ......................................................................................................................................................... 17
1.2.2.1 Oil................................................................................................................................................................................ 17
1.2.2.1.1 Status................................................................................................................................................................... 17
1.2.2.1.2 Investment Requirement ..................................................................................................................................... 18
1.2.2.2 Non-Associated Gas .................................................................................................................................................... 19
1.2.2.2.1 Status................................................................................................................................................................... 19
1.2.2.2.2 Investment Requirement ..................................................................................................................................... 20
1.2.3 Midstream ........................................................................................................................................................ 20
1.2.3.1 Pipelines ...................................................................................................................................................................... 20
1.2.3.1.1 Status................................................................................................................................................................... 20
1.2.3.1.2 Investment Requirement ..................................................................................................................................... 21
1.2.3.2 Crude Oil Terminals.................................................................................................................................................... 22
1.2.3.2.1 Status................................................................................................................................................................... 22
1.2.3.2.2 Investment Requirement ..................................................................................................................................... 22
1.2.4 Downstream ..................................................................................................................................................... 22
1.2.4.1 Refineries .................................................................................................................................................................... 22
1.2.4.1.1 Status................................................................................................................................................................... 22
1.2.4.1.2 Investment Requirement ..................................................................................................................................... 23
1.2.4.2 Petrochemicals ............................................................................................................................................................ 24
1.2.4.2.1 Status................................................................................................................................................................... 24
1.2.4.2.2 Investment Requirement ..................................................................................................................................... 24
1.2.4.3 Gas Processing ............................................................................................................................................................ 25
1.2.4.3.1 Natural Gas Liquids ............................................................................................................................................ 25
1.2.4.3.1.1 Status .......................................................................................................................................................... 25
1.2.4.3.1.2 Investment Requirement............................................................................................................................. 26
1.2.4.3.2 Liquefied Natural Gas......................................................................................................................................... 26
1.2.4.3.2.1 Status .......................................................................................................................................................... 26
1.2.4.3.2.2 Investment Requirement............................................................................................................................. 26
1.2.5 Infrastructure ................................................................................................................................................... 27
1
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otherwise, or as part of any commercial service without the prior written permission of Bayphase Limited.
Umm Al Farrud, 36, 54, 55, 59, 105, 176, Korea National Oil Corporation (KNOC),
177 242
B
a y p ase
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Geologists, Engineers and Investment Analysts