Apache to Build Fourth Gas Processing Train at Salam Plant

Apache Corporation said that the Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS) have approved construction of a fourth processing train at the Salam natural gas plant on Apache's Khalda Concession in Egypt's Western Desert.

The additional processing train, combined with the recently approved third train, will increase the capacity to process gas from Apache's Jurassic formation gas reserves to 710 million cubic feet (MMcf) of gas and 66,000 barrels of condensate per day, including access to processing capacity at Shell's Obaiyed plant. The expansions are scheduled to be completed before the end of 2008.

Current gross production from Apache's Jurassic fields is 512 MMcf of gas and 18,200 barrels of condensate per day, the limit of existing processing facilities. Apache's current net production from the fields is 224 MMcf of gas and 8,000 barrels of liquid hydrocarbons per day.

Apache has awarded contracts totaling $375 million to Petrofac Limited to construct the third and fourth trains. Each of the new facilities will have capacity to process 100 MMcf of sales gas and 14,000 barrels of sales condensate per day.

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