Menzel Ledjmet East output goal is mid-2011

By OGJ editors
HOUSTON, Aug. 4 -- The target for first hydrocarbons production from the $1.3 billion Menzel Ledjmet East (MLE) development in eastern Algeria's Berkine basin is the second quarter of 2011, said First Calgary Petroleums Ltd., Calgary.

The plan entails combined production of the MLE and Central Area Field Complex (CAFC) producing areas, with MLE to be developed first.

The company plans to relinquish the ZER area about 20 km northwest of the nearest producing well in the CAFC area after having determined it would not be economic to develop.

A gas plant and gathering system with capacities of up to 300 MMcfd and 40 million b/d are to be designed.

The company, which in July received four engineering, procurement, and construction bids for the project, place orders for $141 million in line pipe. Three pipelines are to transport gas, condensate, and LPG to the national grid 140 km west of Block 405b, and a crude oil pipeline will tie into an existing pipeline in the basin.

One rig is drilling delineation wells in the MLE area. The first section of a housing base for 185 joint venture staff at Hassi Messaoud is to be available for occupancy by December.

Sonatrach is under contract to market gas from the fields, and discussions are under way for it to market the liquids.

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