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Petroleum industry

Anadarko Petroleum Corporation Expands Production in Algeria Through Stage II Facilities Development

Strategic Insights

— 2 min read

Anadarko Petroleum Corporation, in partnership with SONATRACH, LASMO, and Maersk, has signed an addendum to the Engineering, Procurement & Construction (EPC) contract with Brown & Root-Condor for the development of Stage II facilities for the Hassi Berkine South (HBNS) Field in Algeria. This expansion will significantly increase the company's production capabilities, enabling the development of the Hassi Berkine oil field in the Sahara Desert. The Stage II facilities are expected to be completed by fall 2001, with a total production capacity of 210,000 BOPD (gross) and a preliminary cost and production sharing split of 74.5% and 25.5% respectively.

Key Takeaways:

  • Anadarko and partners have signed an addendum to the EPC contract with Brown & Root-Condor for the development of Stage II facilities for the HBNS Field, covering the construction of a production train capable of processing 75,000 BOPD (gross).
  • The HBN Field will be unitized between the Anadarko/SONATRACH Association and the AGIP/SONATRACH Association, with a preliminary cost and production sharing split of 74.5% and 25.5% respectively.
  • The 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 which time a total of three production trains at the Central Production Facility will give the partners a total crude oil production capacity of 210,000 BOPD (gross).
  • Anadarko's scheduled development plan also includes the development of "satellite" fields on Block 404, discovered by Anadarko and partners in January 1995, with a capacity of 75,000 BOPD (gross) per production train.
  • 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.
  • Other partners in the Algerian venture include SONATRACH, LASMO Oil (Algeria) Limited, and Maersk Olie Algeriet AS.

Statistics:

  • 75,000 BOPD (gross) production capacity for each production train
  • 210,000 BOPD (gross) total production capacity after completion of the Stage II facilities
  • 74.5% cost share for the Anadarko/SONATRACH Association
  • 25.5% cost share for the AGIP/SONATRACH Association
  • 1995: Year of discovery of the "satellite" fields on Block 404 by Anadarko and partners
  • 1996: Year of signing the original EPC contract with Brown & Root-Condor
  • 1998: Year of initial oil production from the Stage I facilities

Sources:

  • Anadarko Petroleum Corporation press release, December 22 (PRNewswire)
  • Brown & Root-Condor EPC contract, September 1996 (exact date not provided)
  • Algerian venture partners' information: SONATRACH, LASMO Oil (Algeria) Limited, and Maersk Olie Algeriet AS
  • Anadarko's scheduled development plan (exact document not provided)

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