HOUSTON, May 4 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC)
today announced first crude oil production from the Hassi Berkine South (HBNS)
Field, located on Block 404 of Algeria's Berkine Basin.
Production from the HBNS 1b well began flowing through the Stage I
production facilities. During the start-up phase, production from the first
well will be brought on in increments to ensure safe operations. As the flow
rate is increased and stabilized, additional development wells in the Field
will be brought on line. The Central Production Facility's design capacity is
60,000 barrels of oil per day (BOPD).
Anadarko Chairman, President and Chief Executive Officer, Robert J.
Allison, Jr., said, "About nine years ago, we told stockholders that Anadarko
would take a bold step in a new direction and begin a long-term exploration
program in Algeria's Sahara Desert. The achievements of Anadarko and its
partners are truly a world-class success story by any oil industry standard.
Now, with first oil production we begin to transform exploration success into
a commercial success for the economic benefit of Anadarko stockholders and the
citizens of Algeria."
Over the next few years, Anadarko and its partners will develop other
commercial fields and build additional production facilities in the Sahara.
Gross production is expected to grow to over 300,000 BOPD early in the next
century.
Anadarko's interest in the Algerian Production Sharing Agreement for
Blocks 208, 211, 245 and 404 is 50 percent before participation at the
exploitation phase by SONATRACH, the national oil and gas enterprise of
Algeria. The Company's two partners are LASMO Oil (Algerie) Limited and
Maersk Olie Algeriet AS. Under the terms of the agreement, liquid
hydrocarbons discovered, developed and produced will be shared by SONATRACH,
Anadarko and its two partners.
Timeline For Algeria Exploration Venture
June 1986 -
Initial visit to review data by Anadarko pathfinders.
December 1989 -
Production sharing agreement signed with SONATRACH that provided for
investment of $100 million in exploration efforts over a 10-year
period.
1990 -
Partners begin acquiring new 2-D seismic data.
1991 -
First well drilled -- a dry hole!
1993 -
First oil discovery -- EMK #1 well tests 3,700 BOPD from two Triassic
zones.
March 1995 -
Discovery of the HBNS Field. The HBNS No. 1b tests 16,000 BOPD of 42
degree API gravity oil.
July 1996 -
Authorization by Algerian government for construction of Stage I
production facilities at the HBNS Field.
September 1996 -
Signed $177 million Engineering, Procurement and Construction (EPC)
Contract with Brown & Root Condor (BRC).
January 1997 -
BRC mobilized to the HBNS Field location in the Sahara Desert, about
400 miles south of Algiers.
April 1998 -
Commissioning and testing phase at the HBNS Field. Final inspection,
pressure and calibration checks and certification on 45 main process
systems and 136 individual sub-systems that must be operational for
start-up.
April 29-May 3, 1998 -
Production start-up sequence underway. Review all safety regulations
and procedures for plant operations staff; walk-through start-up
process for oil separation system, generators, compressors, export
pumps, measurement and calibration systems.
May 4, 1998 -
First oil production.
(A) This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act 1934. Anadarko believes that its expectations are based on
reasonable assumptions. No assurances, however, can be given that its goals
will be achieved. See Additional Factors Affecting Business in the
Management's Discussion and Analysis (MD&A) in the Company's 1997 Annual
Report on Form 10-K.
SOURCE Anadarko Petroleum Corporation
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fax, 800-758-5804, ext. 038950
CONTACT:
A. Paul Taylor, Jr. of Anadarko Petroleum
Corporation, 281-875-1101
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