LIBYA - Lasmo Venture.

Lasmo of the UK is developing Elephant field, a griant which at NC-174 Block in the Murzuk Basin, for a capacity that could exceed 150,000 b/d by 2002. Initial production could begin later this year as soon as preliminary export facilities become ready. Lasmo's discovery well in October 1997 flowed at almost 10,000 b/d of 39[degree sign] API oil and was the largest find in Libya since the mid-1980s. It is 70 km south of a new oil pipeline from the adjacent Al Sharara field to Zawiya. Elephant and finds made by Lasmo in the same block are said to contain about 1.5 bn barrels and full development, together with export facilities and other ligistics, could cost almost $5 bn. Lasmo holds a third in NC-174, with Agip and Pedco of South Korea each having another third. The same partner have Block NC-173 in a nearby section of the Gulf of Sirte.