Italian energy major Eni SpA (E) has resumed oil production in Libya. The company had temporarily abandoned all operations in its North African facility because of a civil war in the country. Production has begun from 15 wells in the Abu-Attifel field, which is situated about 300 kilometers south of Benghazi.
The current production of Eni is about 31,900 barrels of oil a day from the Abu-Attifel field. Subsequently, more wells will likely be restarted to utilize the capacity of the pipeline linking the field to the Zuetina terminal.
Additionally, Greenstream BV Libyan Branch, the gas transportation joint venture between NOC (National Oil Corporation) and Eni has started testing activities for the movement of natural gas through the Greenstream pipeline to Gelain Italy from the treatment plant of Mellitah Oil & Gas in the western part of the Libyan coast. This marks the initial pick-up of pipeline operations after eight months of disturbances due to the riots in Libya.
Presently, Mellitah, the operator of production fields in Libya, and joint venture between NOC and Eni are putting in efforts to bring online gas production from the offshore platform of Sabratah, located 110 km from the Libyan coast in the Bahr Essalam gas field, and the associated treatment and processing facilities at the Mellitah Complex. The firms plan to start the facilities in November.
Bahr Essalam field is a vital source of gas supply for Greenstream and production restart will help in gradually expanding volumes.
The initial tests are being made with 3 million cubic meters of gas per day produced at the Wafa field. The field is located in the Libyan desert, about 500 km South West of Tripoli. The output from the field is mainly used for power generation in the domestic market.
Eni holds a Zacks #4, which translates into a Sell rating for a period of one to three months. For the long term, we maintain a Neutral rating on the stock. Total SA (TOT) and Chevron Corporation (CVX) are major competitors of the company.
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