BHP Billiton’s Algerian gas venture to go on stream by 2H 2003
Australia's resources giant BHP Billiton is expected to start wet gas production from its Ohanet operation in southern Algeria in late 2003, a company executive said.
The development deal for the Ohanet gas field was signed in July 2000 with the Algerian government and is valued at $928 million.
"The construction of the gas facilities is 85 percent completed and we expect first gas in the second half of 2003," BHP Billiton's External Affairs Manager Martin Christie said this week on the sidelines of an industry conference in Algiers.
"We have drilled a total of 24 wells by the end of November and re-completed 14 existing wells from oil to gas production," he added. Under the terms of the agreement, BHP Billiton owns a 60 percent share in the venture with Japan's Ohanet Oil and Gas Company contributing 30 percent and US Petrofac Resources (Ohanet) the remaining 10 percent.
The Ohanet operation includes the construction of a gas treatment facility with the capacity of 20 million standard cubic meters a day, condensate and liquefied petroleum gas storage units and three short export pipelines to be connected to the existing network run by Algeria's state oil and gas company Sonatrach.
The project, located in the Illizi basin some 1,300 kilometers southeast of Algiers, has estimated proven and probable reserves of 3.4 trillion cubic feet of natural gas, 107 million barrels of condensate and 116 million bbl of liquefied petroleum gas-butane and propane.
Once operational, production at the Ohanet facilities will average around 3,500 tons a day of condensate, 2,400 tons a day of LPG and 18 million cubic meters a day of sales gas.
Under the agreement, the investments of BHP and the partners on the project are remunerated with a share of the condensate and LPG production over a period of
8-12 years depending on market prices. — (menareport.com)
© 2002 Mena Report (www.menareport.com)