Marsa al-Brega construction work set for new year

26 November 2007

A joint venture of the UK/Dutch Shell Group and state-owned Sirte Oil Company (SOC) will issue tenders in the new year to rejuvenate the country’s only liquefied natural gas (LNG) plant.

The tenders are for the LNG plant at Marsa al-Brega in the northeast.

“The SOC/Shell joint project team in The Hague is working on finishing engineering activity, and the construction phase is scheduled to be launched in early 2008,” says a senior source at state-owned National Oil Corporation. “The prequalification has been done.”
Contractors submitted applications to prequalify for the construction contract in September 2006, but have been kept in the dark as to the success or otherwise of their bids. “I believe the bids are still valid,” says the source.
The estimated $300m rejuvenation project will extend the lifespan of the 25,000-barrel-a-day (b/d) facility for at least a further 25 years.

Shell is also in the running to build the country's next LNG facility, at Ras Lanuf. Italy's Eni has also submitted plans for a new plant. (MEED 23:11:07).

Gas for the plants could come from Shell's own exploration for gas in the Sirte basin. The company will mobilise its first rig in early 2008, with a second to follow later in the year. A total of three-four wells are set to be drilled by the end of 2008.

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