Foster Wheeler awarded Libya upstream design deal

20 July 2014

US engineering consultancy Foster Wheeler awarded contract as $800m Area 47 project is restarted after concerns about instability

The local Nafusah Oil Operations has awarded the US’ Foster Wheeler the front-end engineering design (feed) contract for the onshore oilfield development of Area 47, near North Hamada Field in Libya’s western border with Tunisia and Algeria.

The $800m project had been placed on hold in March 2014 due to increasing instability in the region. Nafusa Oil Operations is a joint venture of Indonesian integrated energy company MedcoEnergi, Libya’s National Oil Corporation (NOC) and the Libyan investment Authority

The joint venture plans to develop an onshore field on the site, which is situated in Libya’s Ghadame Basin, The planned development will comprise approximately 34 producing wells, including 11 existing wells and approximately 23 new wells.

Flow-lines and a common gathering trunk-line to transport the well fluids to the central gas oil separation facility for primary treatment will also be constructed.

After separation, the oil and gas produced will be exported through new pipelines that will be connected to existing pipelines carrying products to the Mellitah export terminal, located in the northwest of Libya, on the Mediterranean Sea.

The planned capacity of the gas oil separation facility is 50,000 barrels a day (b/d) of oil, and 90 million cubic feet a day (cf/d) of gas and associated water that will be re-injected into the reservoirs.

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