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A Special International Report
Prepared by
The Washington Times
Advertising Department - Published on July 2, 1999
[Home Page]
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Advertisers (1) Sonatrach,
An International Petroleum Group
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Huge oil resources will last for many years Algeria's main production fields are in the region of Hassi Messaoud (containing 6.4billion bbl, about 70% of the country's known reserves) in the central desert region , of nearby Hassi Berkine which came on production in 1998 and around Ain Amenas, beside the border with Libya.
Algeria first discovered oil in 1956 but did not produce until 1958. Then in 1970 it nationalized the industry. But in1991 in view of the necessity to attract foreign investment a new law enabled foreign firms to share in existing fields. Algeria currently has hydrocarbon reserves estimated at 4.2billion tons (1.2 billion tons crude oil), but although 35,000 square miles are under exploration there is still a vast amount of scope for further exploitation. On an international scale Algeria has only 0.9% of the world's oil reserves, but the eighth largest gas reserves. Gas is exported by a series of pipelines across the Mediterranean to Italy and to Spain and it is also shipped over the world (and even provides 40% of the natural gas in use in Boston). Among the companies involved in exploitation are Total and BHP, JGC, Mitsubishi, Sofregaz, MW Kellogg and Bechtel. It is planned that by next year crude oil production will increase to 1.4 million bpd. Saharan oil is among the best in the world with a specification of 45deg API, minimal sulfur and metal content.
Anadarko has spent $220million on the Hassi Berkine South oil field. The central processing plant is designed to deal with current production of about 60,000 bpd but it is expected that the field will give more than 300,000 bpd within three years. Anadarko is waiting for the go ahead on building another two stages which will eventually triple the plant's capacity. The plant has two 90,000 bbl storage tanks which can stock three days' production. The crude oil is exported down a 30inch line towards Haoud el Hamra and the coast some 500 miles away. With a production worth $35,000 per hour, just filling the pipeline took some 15 days of production – and represents $500 million tucked away - and untouchable.
Power is supplied by two 19.5MW gas turbine generators - which produce enough free electricity to power a small town from the surplus gas coming from the well. The oil, which comes from eight wells drilled to a depth of 3,500 meters, is heated to 160 degC, separating gas, oil and water. Gas which comes as a byproduct of the well is recompressed and pumped down the well again in order to protect the reservoir. All the materials for the new base which is some 140 miles out in the desert from Hassi Messaoud were trucked in down the one tarmac road built for the purpose. The base has its own doctor, also the only woman among 180 men, Dr. Rabea Rahmani, and full time nurse. She has been working in oil production centers in the region for four years. As the only doctor for miles she has to treat the neighboring nomads as well. One of the imagined scares of desert turns out not to be quite so dangerous as one might think. “There are scorpions out there in the desert but they are rarely seen and usually innocuous - but it's a good idea to wear shoes," she advises. "If anything goes on out here we can only depend on ourselves," said safety officer Stewart Fraser. But safety equipment include two fire trucks, ambulance and other emergency vehicles run by specially trained emergency crew. The site lost in the middle of nowhere also houses two happy residents in what is probably the most expensive and hottest duck pond in the world - Monica and Bill, two Barbary ducks. In a climate where temperatures often exceed 51 degrees centigrade (124deg F) work can be extremely difficult and but as in most oil industry sites all facilites are laid on.
There is a 200 seat restaurant providing meals around the clock for the different teams on the site, most of whom work on a 28day on/off basis. The site is connected to the outer world by satellite and a fiber-optic cable. Built by about 1,500 employees from Brown and Root, work on plant began in October 1996 and it was inaugurated on May 4, 1998. It has so far produced more than 12 million barrels of oil. |
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Table of Contents (1) His Excellency Abdelaziz Bouteflika, President of the Democratic and Popular Republic of Algeria (2) Country has resources and potential and is moving toward peace (3) History (4) Stability predictable for Algeria (5) Terrorism is costly - in lives and finances (7) Despite being free, press sometimes is silenced (8) Local bidders and foreign investors being courted (9) Despite previous problems, economic future is bright (10) Institutions (11) Director-General sees light as country comes out of tunnel (12) Housing shortage creates enormous market for homebuilders (13) Bureaucracy remains a major barrier to investment (14) Algeria is gateway to Africa (15) A country made for Tourism (16) A Rich Heritage in Arts and Crafts (17) Casbah's unique beauty to be restored (18) Algeria Facts (19) Privatization goes forward with progress, challenges (20) Country rich in resources, civilization, ambition (21) World renowned hotel carries proud past of history and wealth (22) Fight against terrorism has helped world (23) Banking reforms, foreign investment moving quickly (24) World Bank senses new optimism in Algeria (25) Algerian-American Chamber of Commerce meets to promote trade relations (26) Ministry of Labor promotes programs to reduce unemployment (27) Agriculture potential is tremendous, but investment is needed (28) Algeria adopts new programs to solve water shortages (29) Wine growing provides export income (30) Petroleum companies aware of potential says Sonatrach CEO (31) About Sonatrach (32) Bright future ahead for oil industry (33) Huge oil resources will last for many years (34) The place of small industry in the economy (35) Country's first Bourse to open soon (36) ONAB encourages investors to grasp potential in Algeria (37) The El-Aurassi Hotel plans to go public (38) Enad hopes to partner with leading detergent producers (39) ENGG strives to improve refining system and attract foreign investment (40) Agricultural Bank plans expansion (41) Vehicle manufacturer seeks further investment |
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Some 40 foreign firms are working in the country and
they have signed 12 new production and exploration agreements and more than $300 million
have been invested. Anadarko was the first foreign company to invest under the 1991 law.
Although seismic data is difficult to assess in the Sahara because of the influence of
sand dunes which distort the results, the largest discovery in Algeria and perhaps the
Continent was made at Hassi Berkine. The area has been the scene of the largest
three-dimensional seismic acquisition program ever carried out on dry land.
