BP and Sonatrach Sign Development Agreement
Sonatrach has entered into an agreement with BP to double the output of four gas fields in Amenas in southeastern Algeria. The fields were discovered in the late 1990s by Amoco before its merger with BP.
The development project would boost output at the fields to 25.5 million cubic meters of dry gas and 50,000 cubic meters of liquefied gas. The project will eventually increase Algeria's natural gas exports to 85 million cubic meters a year. Production is expected to start during the fourth quarter of 2005.
The total cost is estimated at approximately 1.05 billion dinars ($13 million). Kellogg Brown & Root unit and JGC Corp. will provide engineering services which includes setting up a processing facility with a 30 million-cubic-meter-a-day capacity and three pipelines with a total length of 107 kilometers.