Production Begins From Anadarko's HBNS Stage 2 Facilities in Algeria

abarrelfullabarrelfull wrote on 15 May 2012 06:03

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Sept. 5, 2001

Anadarko Petroleum Corporation (NYSE:APC) and SONATRACH, the Algerian National Oil Company, announced the start-up of a second oil production train at their Hassi Berkine South oil field (HBNS). Gross oil production at this field will increase from 74,000 barrels a day to 135,000 barrels a day. This volume increase should be reflected in Anadarko's reported crude oil sales beginning in October.

"This is the first of several new oil production facilities in Algeria we'll be bringing on line over the next two years, making Algeria an important piece of our near-term production growth story," said John N. Seitz, Anadarko President and Chief Operating Officer. "When all these units are up and operating, our gross production capacity in Algeria will exceed 500,000 barrels a day."

Anadarko, SONATRACH and partners Lasmo Oil (Algeria) Limited, a wholly owned subsidiary of Italy's ENI, and Maersk Olie Algeriet AS, a wholly owned subsidiary of Maersk Olie Og Gas AS, have completed the second train of a central processing facility at the HBNS field. When completed, the facility will include four production trains. The first train was completed in May 1998. These facilities are being constructed by Brown & Root - Condor, jointly owned by Brown & Root (a subsidiary of Halliburton Company) and affiliates of SONATRACH.

At HBNS, successful development drilling to date has resulted in 24 producing wells, 12 water injectors and three gas injectors. Development drilling continues, and current development plans call for a total of 53 wells.

This Stage II construction project also includes a third 75,000-barrel-a-day train to process production from the nearby Hassi Berkine field (HBN) beginning in early 2002. This project includes the installation of a gathering system, injection lines and crude oil storage and export facilities. Development drilling is under way in the HBN field, where 11 wells have been drilled to date. The HBN field is located on Block 404, operated by the Anadarko/SONATRACH Association, and on Block 403, operated by the Agip (Algeria), a wholly owned subsidiary of Italy's ENI, and SONATRACH Association. The HBN field is unitized between the two associations.

The fourth 75,000-barrel-a-day train also under construction at the HBNS complex will process production from the Block 404 "satellite" fields — the HBNSE, BKNE, RBK, QBN and BKE fields. First production from this facility is expected in August 2002.

When completed, the combined oil production capacity for these fields will be more than 285,000 barrels a day. The HBNS, HBN and satellite fields are operated by Groupement Berkine, a joint operating association of Anadarko and SONATRACH.

Development work continues at the Ourhoud field, where gross production capacity will be 230,000 barrels a day when the field development is complete.

In addition to these construction programs, Anadarko and its partners are preparing to resume exploration drilling during the first half of 2002 under an exploration contract with SONATRACH that was signed this past spring.

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