Anadarko and Partners Exercise Option to Develop the HBN Field in Algeria
HOUSTON, Dec. 22 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) and its partners, SONATRACH, LASMO and Maersk, today announced the signing of an addendum to the Engineering, Procurement & Construction (EPC) contract entered into with Brown & Root-Condor last September for the development of Stage II facilities for the Hassi Berkine South (HBNS) Field. The signing will lead to further significant expansion of the Company's production capabilities in Algeria by providing for development of the Hassi Berkine (HBN) oil field in the Sahara Desert in Algeria.
Brown & Root Condor is a company jointly owned by Brown & Root (a subsidiary of Halliburton Company) and affiliates of SONATRACH.
With this signing, Anadarko and partners exercise the first of two fixed- price options available to them as part of the EPC contract. This option covers construction of a production train capable of processing 75,000 BOPD (gross) from the HBN Field, and installation of a gathering system, injection lines and crude oil storage and export facilities. The HBN Field is located on Block 404, operated by the Anadarko/SONATRACH Association, and on Block 403, operated by the AGIP/SONATRACH Association. The HBN Field will be unitized between the two Associations. Preliminary cost and production sharing splits will be 74.5% for the Anadarko/SONATRACH Association and 25.5% for the AGIP/SONATRACH Association.
Anadarko's scheduled development plan calls for completion of the Stage II facilities at HBNS, capable of handling 75,000 BOPD (gross), in the fall of 2001. The HBN facilities are expected to be completed in early 2002. At that time, a total of three production trains at the Central Production Facility will give the partners total crude oil production capacity of 210,000 BOPD (gross). (An EPC contract with Brown & Root-Condor was signed in September 1996 for construction of the Stage I facilities, with a capacity of 60,000 BOPD (gross). (Initial oil production began in May 1998.)
The original EPC contract with Brown & Root Condor includes one remaining fixed-price option to construct a fourth production train, with a capacity of 75,000 BOPD (gross) to develop the "satellite" fields on Block 404 (HBNSE, RBK, QBN and BKNE) that are near the HBNS Field discovered by Anadarko and partners in January 1995.
Other partners in the Algerian venture include SONATRACH, Lasmo Oil (Algeria) Limited, a wholly owned subsidiary of LASMO plc; and Maersk Olie Algeriet AS, a wholly owned subsidiary of Maersk Olie Og Gas AS, a company in the Danish A.P. Moeller Group.
SOURCE Anadarko Petroleum Corporation
CO: Anadarko Petroleum Corporation; SONATRACH; LASMO plc; Maersk Olie Og Gas AS; Maersk Olie Algeriet AS; Brown & Root-Condor; Brown & Root; Halliburton Company; Lasmo Oil (Algeria) Limited; A.P. Moeller Group
ST: Texas, Algeria
IN: OIL
SU: CON
12/22/1999 12:42 EST prnewswire.com |
