BHP Billiton Announces First Gas from Ohanet Development in Algeria

Source: www.gulfoilandgas.com 10/28/2003, Location: Africa

BHP Billiton announced first gas production from the jointly operated BHP Billiton / SONATRACH wet gas development at Ohanet in southern Algeria on Monday 27 October 2003. The new facility was commissioned on schedule and within the original US$1 billion budget (US$464 million net to BHP Billiton).

The new processing facility will treat around 710 million standard cubic feet per day (MMscf/d) of gas and produce a maximum of 30,000 barrels per day (bbl/d) of condensate and 26,000 bbl/d of Liquefied Petroleum Gas (LPG), together with a stream of dry pipeline sales quality gas for SONATRACH.

Philip Aiken, President and CEO of BHP Billiton Petroleum, said: "The delivery of the Ohanet development is another example of BHP Billiton's ability to deliver a complex project in a challenging operating environment. By any measure – technical, financial, or health & safety - the project is an outstanding success and I applaud all those involved who participated in the development for achieving this major milestone. We now look forward to a safe and successful ramp-up to full production capacity over the coming weeks."

A total of 28 new wells have been drilled and completed and 15 existing wells re-completed to develop the 4 reservoirs forming the development. A further 4 wells will be drilled after 3-4 years of production history has been gathered.

"The Ohanet development represents our first commercial production in Algeria," added Mr Aiken. "With the completion of the ROD Integrated Development next year we will have built an excellent platform in Algeria on which we hope to build."

BHP Billiton holds a 45% equity interest in Ohanet with other partners Japan Ohanet Oil & Gas Co., Ltd., 30%; Woodside Energy (Algeria) Pty. Ltd., 15%; and Petrofac Resources (Ohanet) LLC, 10%.



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