ALGIERS: Algerian Energy and Mining Minister Youcef Yousfi has officially brought into production El Merk oilfield in Berkine basin, located in Illizi province, 1,600 km southeast of Algiers.
The oilfield, operated by Sonatrach and partner US Anadarko, will produce 146,000 barrels per day, the state-run Algeria Press Service (APS) reported.
Sonatrach holds 51 percent of El Merk stake, under a production sharing contract concluded with its partners under the former law on hydrocarbons 86-14.
A 49 percent share of the production will return to Anadarko and partners Eni, Maersk, Conoco Philips and Talisman.
El Merk proven reserves are estimated at 1.2 billion barrels of oil, including nearly 40 percent or 647 million barrels are recoverable.
According to the explanations of Grouping Berkine, which is an association composed of Sonatrach and Anadarko, entrusted with the project’s development.
Situated in Berkine bassin, formerly Ghadames in the province of Illizi, El Merk, has become the centre of Sonatrach developent strategy to increase its crude, condensate and LPG production capacities.
Partners, Sonatrach and Anadarko, present it as a project completing Berkine’s, already under exploitation since 1998.
It will raise the latter’s overall production up to over 300,000 barrels per day, i.e. the second largest production after that of Hassi Messaoud, Algeria’s largest oil filed.
Oil processing plant, commissioned last May, currently produces 83,000 barrels per day as from 53 wells drilled in block 208 of El Merk.
The partnership Sonatrach-Anadarko plans to raise production to 146,000 bpd of oil, LPG and condensate with the launch of 27 further wells.
In total, the project of El-Merk exploitation which cost is amounted to $4 billion.
Includes 80 wells, 30 among them for oil production and 8 for the extraction of gas.
It covers four fields El Merk, El Khit Timissa, northern El Merk and eastern El Merk. (QNA)
