Algeria Production Needs a Boost

It is well recognized that Algeria’s hydrocarbon production has been at somewhat of a growth standstill for over five years. There are a couple of projects in the works that will give Algeria a production boost, one in the near-term and another a little farther down the road.

In the very near-term Algeria will see Anadarko Petroleum Corp. bring its El Merk central facilities and associated infrastructure on Block 208 online. The company said that the overall project had surpassed 90% completion at the end of Q1. First production from the facilities will come onstream during 2012, giving production totals for Anadarko and Algeria a boost.

Another company whose hard work will provide production dividends for Algeria is Petroceltic International plc. The company has made great strides in its exploration and appraisal programs over the past few years and has booked enough reserves to justify a substantial development on the Isarene permit.

Petroceltic’s estimate of most likely gas resource in place in the permit area increased by about 70% to 10.3 Tcf. Substantial progress on finalizing a plan of development which incorporates gross recoverable contingent resources of 2.2 Tcf of gas and 180 million barrels of condensate, and LPG recoverable contingent resources over life of field has been made. The partners are working on the Final Discovery Report and the Declaration of Commerciality. Once a Plan of Development is agreed on it is envisaiged that the partners will move quickly toward development, which will give Algeria another boost in hydrocarbon production.