Sonatrach, BHP Billiton begin first Ohanet gas production in Algeria

Nov. 6, 2003
First gas for export began flowing Oct. 27 from the Sonatrach and BHP Billiton Ltd.-operated wet gas development at Ohanet, Algeria. At peak production the $1 billion facility will treat about 710 MMscfd of gas and produce a maximum of 30,000 b/d of condensate and 26,000 b/d of liquefied petroleum gas (20,000 boe) for export, together with a stream of dry pipeline sales quality gas for Sonatrach.

By OGJ editors

HOUSTON, Nov. 5 -- First gas for export began flowing Oct. 27 from the Sonatrach and BHP Billiton Ltd.-operated wet gas development at Ohanet, Algeria. At peak production the $1 billion facility will treat about 710 MMscfd of gas and produce a maximum of 30,000 b/d of condensate and 26,000 b/d of liquefied petroleum gas (20,000 boe) for export, together with a stream of dry pipeline sales quality gas for Sonatrach.

Ohanet Development is located in the Illizi province of Algeria, 1,300 km southeast of Algiers and 100 km west of the Libyan border.

A total of 28 new wells have been drilled and completed and 15 existing wells recompleted to develop the four reservoirs forming the development. An additional four wells will be drilled after 3-4 years of production history has been gathered, BHP said. More than 150 km of flowline connects the producing wells to the central processing facility.

Sonatrach owns and markets the pipeline sales gas, and under terms of a risk service contract signed in July 2000, the joint venture partners funded the project and receive a portion of the liquids production over a 8-12 year period.

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

Petrofac International Ltd. carried out the engineering procurement, and construction contract for the gas processing facilities at Ohanet in a joint venture with ABB Lummus Global BV.