FCP signs joint venture to develop Algerian gas field
First Calgary Petroleums (FCP) has reached an agreement in principle with Sonatrach, the Algerian National Oil Company, to jointly develop the Menzel Ledjmet East (MLE) gas and condensate field in Block 405b of the Berkine Basin.
FCP and Sonatrach have agreed to work together to finalize the plan for development of the MLE field. Preparation for front-end engineering and the awarding of an engineering, procurement and construction (EPC) contract are anticipated in 2004 with first production expected in 2007.
It is projected the development plan will include the construction of a 650 million cubic feet per day plant for processing natural gas and natural gas liquids. The cost of the development, including development wells, field gathering, facilities and tie-ins is estimated to be in excess of $700 million.
As part of the agreement, FCP and Sonatrach have agreed to jointly secure markets and Sonatrach has further agreed to allocate sufficient pipeline capacity to deliver the product.
The independent engineering firm of DeGolyer and MacNaughton has estimated gross proved, probable and possible reserves to Ledjmet Block 405b of more than 5.7 trillion cubic feet of gas equivalent (TCFe) of recoverable natural gas reserves.
Since these reserve estimates were prepared, FCP has drilled two additional appraisal wells, which have extended the current limits of proved and probable reserves. FCP has recently completed the acquisition and interpretation of 600 square kilometers of 3D seismic immediately adjacent to and west of the MLE field. Based on the results, the company intends to accelerate its drilling program on Block 405b by contracting a second drilling rig.
FCP is a Canadian oil and gas exploration company actively engaged in international exploration and development activities, primarily in Algeria. — (menareport.com)
© 2003 Mena Report (www.menareport.com)