Hasdrubal Oil and Gas Field Development Project


Overview

  • Reference: P-TN-FD0-002
  • Approval date: 17/03/2010
  • Start date: 17/03/2011
  • Appraisal Date: 30/11/2007
  • Status: ApprovedAPVD
  • Implementing Agency: ETAP Hasdrubal Limited
  • Location: Tunisia

Description

The Hasdrubal Project involves the creation of a stand-alone, concurrent gas, condensate, and oil development structure in the Gulf of Gabes (offshore Tunisia), approximately 100 km from the coast. The Hasdrubal Field was originally discovered by Softareb in 1975 and the permit was awarded to British Gas Tunisia Ltd (BGT_ IN 1988. The concept includes six horizontal development wells, four gas, and two oil bi-laterals to produce raw gas and liquids at plateau production rates up to 120 MMscfd and 15,000 bpd respectively. The oil wells will be drilled in two phases with three gas wells and one oil well completed in each stage respectively. This project will ultimately deliver commercial gas to the STEG national grid at the Ben Sahloun delivery point, in order to serve the local demand. While the butane will be consumed by the local market, and the propane is intended to be exported to the Mediterranean market. Finally, a mixed condensate and oil stream will be transported through the pipeline to La Skhira for storage and subsequent export to the international market. The project is intended to increase production levels to meet the demand of the domestic gas supply in Tunisia, while still maintaining supplies for generation of electricity. It is expected to deliver its first batch of gas in June 2009.


Rationale

Tunisia is increasingly turning to natural gas as a way of coping with steadily increasing domestic demand for energy. The country has 2.8 trillion cubic feet (Tcf) of proven natural gas reserves, with around two-thirds located offshore. Between 1990 and 2001, demand for natural gas grew almost 9% per year due to the revival of economic activity. Much of the demand growth comes from the electricity sector, but industrial and domestic use of natural gas has also increased. The proposed new Hasdrubal gas field development project is intended to increase production levels to meet the demand of domestic gas supply in Tunisia, while maintaining supplies for generation of electricity.


Benefits

BGT is the largest producer of gas in Tunisia, supplying more than 50% of domestic gas demand from its 100% owned Miskar field in the Gulf of Gabes about 110km east of Sfax. Part of the reason for the new Hasdrubal gas facility stems from the Barca Power Project, which is being developed by BGT in Sfax at a cost of $250m. The 500MW Combined-Cycle Gas Turbine (CCGT) Barca power plant will employ 50 people and will use up to 120 million standard cubic feet of gas a day from BG's offshore interests in the Miskar Concession and, potentially, the Hasdrubal gas / condensate field. The Hasdrubal plant will equally contribute to the development of this area as a significant employer creating a number of new jobs for the local population, while also improving gas supply to the domestic market.


Key contacts

HASSAN Mohamed Houssein - OPSD3


Costs

Finance source Amount
ADBUSD 94,837,070
Co-financierUSD 685,988,139
DeltaUSD 3,541
TotalUSD 780,828,750