Libya closures impact Eni natural gas, liquids production

Offshore staff

SAN DONATO MILANESE, Italy -- Events in Libya hit Eni’s second-quarter liquids and gas production figures. During the period, the company’s global output averaged 1.49 MMboe/d, down 15% on the comparable period for 2010.

The steep fall was caused by the shutdown of activities at nearly all Eni’s (NYSE: E) producing sites in Libya, (which include the giant offshore Bouri field), and closure of the GreenStream pipeline (Eni 50%) transporting gas from Libya across the Mediterranean Sea.

The sole exception was the onshore Wafa field, which has been kept flowing to support local production of electricity.

All the company’s plants and pipelines have been put into safety status, and no damage has been reported. Since March, Eni has evacuated all its personnel and suspended ongoing exploration and development activities.

However, once the political situation has stabilized, Eni says it will be technically able to resume gas output at a level similar to pre-crisis flows.

Last month, Eni reaffirmed its upstream commitment to neighboring Egypt. Its program of activity includes drilling of additional development wells, fasttracking development of recent discoveries, and drilling 12 exploration wells.

During the second quarter, the BB-10 and BLNE-1 oil discoveries were linked to existing facilities at Eni’s Belayim concession in the Gulf of Suez.

07/29/2011