FCP to produce from Algeria's MLE field in 2009
First Calgary Petroleums Ltd. (FCP) will produce 200 MMcfd of gas from MLE oil and gas field in Algeria's Berkine basin and will build infrastructure with Sonatrach by late 2009 under a $1.3 billion development plan.
LONDON, Feb. 19 -- First Calgary Petroleums Ltd. (FCP) will produce 200 MMcfd of gas from MLE oil and gas field in Algeria's Berkine basin and will build infrastructure with Sonatrach by late 2009 under a $1.3 billion development plan.
MLE, which has 230 million boe of reserves, will send gas to a new gas plant, field gathering system, and facilities designed to process 230 MMcfd of raw gas on a gross basis along with associated natural gas liquids and oil. There are proposals to increase the plant's capacity to as much as 400 MMcfd.
MLE's production plateau of 200 MMcfd is over an initial 10 years, and it will produce 21,000 b/d of oil, condensate, and LPG. Sonatrach will market the gas.
MLE is in the eastern part of Block 405b. The block will be developed in stages to exploit oil and gas discoveries west of MLE field after the companies finish appraisals and determine their commerciality.
The joint venture will construct dry gas and liquids pipelines from Block 405b to a tie-in point on the national pipeline grid about 140-km west of the block, said FCP. "In addition, an oil pipeline is planned to be built to a tie-in point on an existing oil pipeline in the Berkine basin (PKO)."
FCP will provide 75% of the $1.3 billion costs, and Sonatrach, will provide 25%. The partners have tendered the contract for the front end engineering and design (FEED) work and expect to grant an engineering, procurement, and construction contract in 2007. Project costs will be refined during the FEED process.
Richard Anderson, FCP Pres. and Chief Executive said: "The Block 405b gas plant will be the first cryogenic liquids extraction facility and gas export system in the Berkine basin."
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