Sonatrach, Anadarko get green light to develop four Algeria fields
The Algerian government has given its approval to develop four fields in Block 208 of the Berkine Basin. Sonatrach, Anadarko Petroleum Corporation and joint venture partners Maersk Olie Algeriet AS and Eni Oil Algeria Ltd are working together to finalize the plan for development of the El-Merk North (EMN), El-Merk East (EME), El-Merk (EMK) and El-Kheit Et Tesseka (EKT) fields.
Preparation for front-end engineering is currently underway, with the award of an engineering, procurement and construction (EPC) contract anticipated in mid-2005. First production is expected in 2007, with average volumes estimated at more than 100,000 barrels of oil and condensate per day.
Rex Alman III, managing director of Anadarko Algeria Company, said: "We are very excited to get the go-ahead to start developing the Block 208 discoveries, as these represent the next phase in increasing Anadarko's production in Algeria. The experience we've gained from our existing developments in the Berkine Basin will give us a head start in developing these four new fields."
The fields, discovered by Anadarko between 1993 and 1998, are located in a 1,200-square-kilometer block in the southern part of the Berkine Basin. They include oil reservoirs in the Triassic section and deeper gas-condensate reservoirs in the Silurian section. Development of these fields is expected to require more than 100 wells and the construction of oil and condensate production facilities.
Alman added: "We're delighted to receive this approval in the same week that we celebrate a significant milestone from our producing fields in Algeria. In just five years since Anadarko's first production from Algeria, gross volumes produced through both the Hassi Berkine South and Ourhoud facilities have exceeded 200 million barrels of oil. This is a remarkable achievement and demonstrates the commitment of the teams we have working on our Algerian projects."
Sonatrach, Anadarko and partners have discovered over two billion barrels of oil in Algeria since the Production Sharing Agreement was signed in 1989. With all four processing units at the Hassi Berkine South Central Processing Facility now operational, the total capacity of the facility has been increased to 300,000 barrels of oil.
In addition, the Ourhoud field, the second largest oil discovery in Algeria, reached its peak production capacity of 230,000 barrels of oil per day this month. Anadarko's net production from Algeria in 2003 is expected to be 23 million barrels of oil.
Anadarko Petroleum Corporation is one of the world's largest independent oil and gas exploration and production companies. Houston-based Anadarko is active in the US, Canada, Algeria, Venezuela and Qatar and is executing strategic exploration programs in several other countries. — (menareport.com)
© 2003 Mena Report (www.menareport.com)