Published: July 12, 2019
The board of Libya's National Oil Corporation has approved a plan formulated by its 100%-owned subsidiary Zallaf Oil & Gas to accelerate further development work at its Atshan gas field.
Atshan straddles blocks NC210 and NC151 and is further development aims to supply gas to the Obari power plant located about 170 kilometres away.
A feasibility study to further develop the field was presented to NOC's board this week by Khalifa Rajab, chairman of Zallaf’s management committee.
As a result, NOC has authorised a series of comprehensive reservoir studies and a plan to determine existing gas reserves, potential production rates as well as associated development and production costs.
NOC's chairman, Mustafa Sanalla, had earlier this month discussed plans with Libya's government for a pipeline linking Atshan to the Obari power plant.
At that meeting, he requested a budget to fast-track the project which will also see the Obari facility converted to run on gas instead of oil.
Libya’s Presidency Council recently ratified the broad outline of this gas-to-power plan while the General Electricity Company of Libya has been preparing to revamp the Obiri plant.
Sanalla said: “Supplying natural gas instead of crude oil would increase the efficiency of the Obari plant and significantly reduce emissions. The switch to gas would also save at-least 15,000 barrels per day that could be sold internationally – further increasing Libya’s export capacity and contributing to national revenue growth."
He hoped the government will now "approve necessary funding so we are able to progress this strategic project as soon as possible.”
NOC gave no indication of when the new project could be up and running, its costs and production potential source