TRIPOLI, July 5 (Xinhua) -- The National Oil Corporation (NOC) of Libya's UN-backed government on Thursday announced the start of production of the phase 2 project of its largest offshore gas field Bahr Essalam.
"National Oil Corporation (NOC) and Eni announce that Mellitah Oil & Gas, an Eni and NOC joint venture company (50/50), has started production in the first well of the offshore Bahr Essalam Phase 2 project," the NOC said in a statement.
Bahr Essalam, located about 110 km northwest of the Libyan capital of Tripoli, is estimated to contain more than 260 million cubic meters of gas.
This comes three years after the final investment decision by the NOC and Eni, an Italian multinational oil and gas company that has operations in 79 countries.
Two further wells will begin production within a week, and an additional seven wells will come onstream by October, the statement said.
The Phase 2 project, which completes the development of the largest offshore producing gas field in Libya, will increase gas production by 400 million cubic feet of standard gas per day (MMSCFD), bringing the total production to 1,100 MMSCFD.
NOC Chairman Mustafa Sanalla said the NOC is committed to guaranteeing and increasing gas production in order to supply Libyan power plants.
This will support the development of the domestic market and reduce costly liquid fuel imports while freeing up significant financial resources, Sanalla said.
Prime Minister Fayez Serraj said the opening of the Phase 2 of the Bahr Essalam offshore gas field "will definitely add true value to the national economy."
Libya is "committed more than at any time" to encourage investment in the oil sector, grant promising opportunities to global giants, and create growth that gives new hope to the Libyan youth, he added.
Eni's CEO Claudio Descalzi said that Bahr Essalam represents "an important milestone" to ensure greater energy supply security for Libya.
