London — Libya's Waha Oil Company is gearing up to restart the second phase of its key El-Farag gas field development, it said March 26.
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Libya's El Farag gas field is currently producing 15,000 b/d of condensate and 70 MMcf/d, Ali el-Farsi, a media coordinator at Waha Oil told S&P Global Platts.
The company restarted phase 1 of the El Farag gas field in November after an eight-month hiatus and by April 7 the second phase will resume, the statement said.
"This is a vital, important and strategic project that will support the electric power plants, and despite the scarcity of spare parts due to poor funding and the country's conditions, we will work to operate the second phase soon," said Waha Oil Chairman Nouri Al-Seid.
After the completion of the second phase, El Farag will be able to produce 180 MMcf/d and 15,000 b/d of condensate, Seid said, which will significantly boost the reconstruction of Libya's power facilities.
The gas from the field is sent via pipeline to the Sarir Electricity Production Station, while the condensate is piped to the Gialo oil field where it is blended into Es Sider crude.
Waha Oil operates a cluster of oil fields in the Eastern Sirte Basin, making up about a third of Libyan crude oil production, with a capacity to pump around 350,000 b/d. The company is a subsidiary of state-owned National Oil Corp.
Libya produces just over 1.2 million b/d of mainly light-sweet crude grades such as Es Sider, Sharara and Brega. Libya's main export markets are in southern Europe and China. The producer -- which holds Africa's largest reserves -- is excluded from quotas imposed by the OPEC+ producers' alliance that limit production.
NOC is looking to increase its crude oil production to 1.45 million b/d by the end of 2021. However, this hinges on NOC receiving its full annual budget along with improved security at its oil infrastructure.
A large part of Libya's aging facilities have been wrecked by civil war, militant unrest and terrorist attacks, leading to general neglect over the past decade. But with the recent formation of an interim Government of National Unity in the country, there has been some progress in terms of political stability in the country.