Anadarko, partner, awarded Algeria exploration block

Petroleum News Alaska Staff

Anadarko Petroleum Corp. and partner Maersk Olie, Algeriet AS have been awarded exploration rights over Block 403c/e in Algeria’s third licensing round, Anadarko said July 2, increasing its gross acreage under contract in the Berkine basin by some 400,000 acres to 4 million acres.

Terms of a production sharing agreement, expected to be signed with Sonatrach within 15 days, include a minimum of 200 kilometers of 2-D seismic and the drilling of one exploration well during the first three-year period.

Anadarko said it will hold a 67 percent interest in the venture, Maersk Oil 33 percent.

Tony Meyers, managing director of Anadarko Algeria Co., said the block complements the company’s current exploration portfolio.

“Block 403c/e is close to our existing production facilities at Hassi Berkine South, where Anadarko and its partners have built up substantial technical knowledge and seismic data. With this infrastructure already in place, future discoveries could be developed quickly and economically,” he said.

Meyers also said Anadarko and its partners will resume exploration drilling in Blocks 404 and 208 and shoot seismic in Block 406b this year.

In April, the fourth and final train at the Hassi Berkine South oil field’s central processing facility began production five months ahead of schedule, increasing capacity to 285,000 barrels of oil per day, Anadarko said, with cumulative production through the facility of 100 million barrels of oil in May.

The company said additional facilities with a total capacity of 230,000 barrels per day are under construction at its Ourhoud field, the second largest field in Algeria, where production is expected to begin early next year.