Initial Engineering and Design Contract Awarded for El Merk

Sonatrach and Anadarko announced that Brown & Root--Condor has won an initial engineering and detailed design contract for the proposed El Merk development in Algeria.

"We are pleased to have reached this key stage in the El Merk project, which moves us closer to our target of first production from the facility in late 2008," said Bob Daniels, Anadarko Senior Vice President, Exploration and Production. "The El Merk development is a significant component of Anadarko's growth strategy."

Sonatrach and Anadarko will operate El Merk, which will be located in Block 208. The block is 56 miles south of the Sonatrach/Anadarko-operated Hassi Berkine South (HBNS) facility.

El Merk will include a central processing facility, export pipelines, and field infrastructure. It will serve as a production hub for the region, processing hydrocarbons from four fields: Block 208 (operated by the Sonatrach/Anadarko Association), Block 212 (operated by the Sonatrach/Eni Association), the unitized El Merk field (located on a portion of both Block 208 and Sonatrach/Burlington-operated Block 405a), and liquid-rich gas from HBNS.

The combined capacity of the oil and natural gas liquid processing facilities will be 108,000 barrels of oil per day, 55,000 barrels of condensate per day, and 75,000 barrels of liquefied petroleum gas per day.

Design work has already begun. The successful completion of this initial engineering and design study will pave the way for formulation of the engineering, procurement, and construction contract, which should be finalized in 2006.

Sonatrach and Anadarko announced the award on behalf of the El Merk partners. The group includes Maersk Olie, Eni, Burlington Resources, Talisman, and Teikoku Oil.

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