The In Salah Gas joint venture has started natural gas production from the 2,000-sq-km southern fields project, the latest phase of development of seven gas fields in central Algeria.
The project involves development of Gour Mahmoud, In Salah, Garet el Befinat, and Hassi Moumene dry gas fields by partners Sonatrach, BP PLC, and Statoil ASA. Drilling of 26 planned southern field wells began in 2014 and is expected to continue until 2018.
Production is planned to ramp up to 14.1 million cu m/day as wells in Garet el Befinat and Hassi Moumene are brought online over the next 2 months.
The JV began production in 2004 from Krechba, Teguentour, and Reg fields in the northern portion the area (OGJ Online, July 7, 2004). BP says developing the southern fields will maintain anticipated production at 9 billion cu m/year.
The southern project’s scope includes a 500-MMscfd gas dehydration central processing facility near Hassi Moumene (OGJ Online, Jan. 19, 2011); brownfield modifications to existing processing facilities at Reg, Teg, and Krechba; 150 km of carbon steel export pipelines; 160 km of 13% chrome corrosion resistant alloy infield flowlines; and the drilling and tie-in of the 26 wells.
In Salah Gas has total estimated recoverable resources of 159 billion cu m. Gas from the southern fields is sold under the same contracts as gas from the northern fields.
Partners’ shares in the In Salah Gas JV are Sonatrach 35%, BP 33.15%, and Statoil 31.85%. BP’s and Sonatrach’s In Salah involvement dates back more than 20 years (OGJ, May 5, 1997, p. 58). Statoil bought into the partnership in 2003 (OGJ Online, July 15, 2003).