Statoil Says Gas Deliveries have Begun from In Salah Project

Gas deliveries began on July 18th from Algeria's In Salah project in the Sahara desert, which is operated by BP, Sonatrach and Statoil.

Annual output from In Salah will be nine billion cubic meters of gas.

From In Salah gas is piped through the project's new 500-kilometer export pipeline. This runs to Sonatrach's big Hassi R'Mel field, which serves as the hub for all gas pipelines in the Sahara.

Exports to Italy are piped on via Tunis to Sicily and into the Italian distribution network.

In Salah ranks as Algeria's third largest gas project, and Statoil has a 31.85 per cent interest. The group also has a 50 percent holding in the In Amenas gas and condensate field on the border with Libya.

The agreements which make Statoil a co-operator and partner in these two fields were recently approved by the Algerian Council of Ministers.

These contracts will provide a foundation for Statoil's future commitment in north Africa and are important for its international business, says Kåre Røsandhaug, Statoil's manager for the gas project.