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Losses of Blockading the Valve of Mellita Complex Pipeline- Al Ruwais Plant.

On 07 September 2017 an unidentified subversive group trespassed and tampered with the pipeline that transports natural gas from Al Wafa Field by closing the valve No. 13 located between Mellita Industrial Complex and Al Ruwais Power Station which led to the complete cessation of gas supplies from Al Wafa Field to the coast line and a partial cessation of the Field's production after a number of producing gas wells being forced to close. NOC's technical team opened the said valve on 09 September 2017. The perpetrator has not been identified and not any demands were recorded, however, this was a message from those who mess with the national security that there were still there! The blockade, which lasted 30 hours, caused a temporary increase in load shedding periods in addition to the following damages:

· The loss of gas quantity estimated at about 310 million cubic/feet.

· The loss of condensates and LPG quantity estimated at about 11,943 barrels.

· The total loss and losing of exports opportunities valued in total at about (US $ 2,168,361).

In this regard, we would like to point out again that Al Wafa Field has a special case as in that:

- Forcing to supply the liquefied fuels instead of gas to meet the needs of the power plants and consequently the increase of the load on the hydrocarbons' account, which will lead to the exceeding the approved budget and draining the country's savings of the foreign currencies.

 

- The Field is located to the west of the Libyan territories and adjacent to AL Rar Field, which is located in the Algerian territories. Both of the Fields are connected to one oil and gas reservoir, which means if one field is closed, the whole oil and gas will migrate to the other field that continues production. This lead to losing and forever unrecoverable quantities of oil and gas reservoir for the benefit of the party that continues production. In such case, Libya is the affected party.

- Resuming production in the Field will not be an easy task. It will cost NOC huge expenses as a result of the technical problems resulted from production interruption and decrease of natural pressure of the wells as it becomes difficult to recover production. High and sophisticated technology then will be needed like lifting by nitrogen and supplying with maintenance drills etc. consequently, very huge amounts of money.

 - Cease of the projects, activities and works related to improving and increasing production capacity that are performed by services companies and contractors. This will make the companies seek claims for outstanding amounts, penalties and damages for the period(s) in which they were delayed for work.

- The sudden interruption operations as in these cases have negative and damaging impact on the surface equipment which have to be closed safely, which is the usual procedure when performing the periodic maintenance or a scheduled overhaul.

 - Al Ruwais Power Plant is connected directly to Al Wafa Field. It cannot be provided with gas from any other source. This stoppage will result in its total shutdown or suppling it with liquid fuels that will cost the State of Libya huge amounts of money, not to mention that the efficiency of gas is much better that diesel fuel.

 - The loss of the opportunity to export natural gas and condensates and earn revenues for the State, which it needs desperately in these difficult circumstances.

 - In addition to all that, continuing to pay the salaries of the employees of the Field, their living expenses and other expenses that are paid at the period in which the Field is closed.

Tripoli

11 September 2017

(NOC.LY)


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