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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (2632)	7/12/2001 10:18:21 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

OT: Libya jumbo joy Upstream, July 13 Vahe Petrossian The long-awaited tender documents for Libya's Elephant oil development project are due out in the next couple of weeks with European and Far Eastern companies facing a September deadline to submit their bids. Bid documents and shortlists for four packages have been submitted to the National Oil Company (NOC) in Tripoli by Lasmo Grand Maghreb -- the Libya-registered subsidary of the UK's Lasmo, which was taken over by Italy's Eni earlier this year. Lasmo, which is working on the documents with NOC subsidiary Teknica, hopes to receive the go-ahead from Tripoli "in one or two weeks at most", said Peter Crerar of Lasmo. Elephant, located on Block NC174 and with recoverable reserves estimated at 560 million barrels, is the biggest field to be discovered in Libya for more than a decade. It is possible that all four packages will be approved, although sources said there is a chance NOC may decide to let through only one package now, leaving the others for later. An official of Teknica, which is managing the tendering, said that this tender round may be confined to the main package, which requires construction of a gas/oil separation plant. If the packages are offered singly, the next job relates to the main civil works. The two remaining packages involve pipelines and electrical supplies. Interested bidders had a briefing in the UK in June, but they were not given specific dates for the planned tenders. Lasmo has set a maximum limit of six for the number of bidders who have pre-qualified for each package. "But everything remains to be approved by Tripoli," said Crerar. A Teknica official said the front-end engineering and design was completed by his company some time ago. NOC holds a 50% stake in the Elephant partnership, with Lasmo and Eni subsidiary Agip each holding one-third of the remainder. The Korean National Oil Company heads a South Korean group holding the remaining one-third. The field involves eventual plateau production of 150,000 barrels per day and development work is due to be carried out in two stages. The first phase aims at an output of 50,000 bpd to be exported via a new 75 kilometre, 24 inch pipeline to Repsol-YPF's producing El Sharara field in NC115, from where it will be piped on through an existing 30 inch line to the Mediterranean coast. The second phase will use the same export facilities and is expected to require another 30 producing wells for a total of 38 wells. Technical data from the first phase will be used to complete phase two, with information on aquifer support significant amid expectations a water injection scheme might be needed.