Continental Focus, International Reach

The Show Goes On in North Africa

Wednesday, October 23, 2013

While the security situations in Algeria, Egypt, and Libya have deterred investment in the North African countries, other countries in the region such as Morocco and Tunisia are seeing increased investment. Despite leery operators, operations are still being conducted by North Africa’s three main producing countries – Algeria, Egypt and Libya – resulting in new production and discoveries.

Most recently Libya knocked out a discovery in the Murzuq Basin and key projects in Algeria are set to make up for some loss in production due to natural decline of mature fields.

Anadarko Petroleum’s start up of the El Merk underscores how Algeria can and will continue to be a major producer in Africa. Start of production at the El Merk field was announced in May. According to operator Anadarko and partner Sonatrach, output should reach 127,000 bpd by the end of the year. El Merk is also expected to produce 30,000 barrels of LPG per day by the end of 2013. The proven reserves in the oilfield amount to 1.2 billion barrels of oil and condensate.

The El Merk is not the only bright spot on Algeria’s radar, the country also has the MLE field which is a collaboration between ENI and Sonatrach. The taps at the MLE field were turned on in Q1 adding new gas production to the country’s totals. Located on Block 405b, the MLE allows for the treatment of rich gas for daily production and the sale of 9 Mcm/d of gas, 15,000 bpd of oil and condensate, and 12,000 bpd of LPG. ENI is expected to reach 100,000 boepd capacity on the MLE by the end of 2013.


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