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.

Company: Talisman Energy more info
Operates 8 Offshore Rigs
 - Strong Upstream Performance from European Majors (Jul 28)
 - PETRONAS, PetroVietnam Extend PM3CAA PSC in Malaysia-Vietnam Waters to 2027 (May 10)
 - Repsol Significantly Scales Back Upstream Investment (Oct 15)
Company: Anadarko Petroleum more info
 - Oil, Gas Leaders Warn Trump He Risks Harming Their Industry (Mar 16)
 - Shale Producers Urge FERC To Deny White Cliffs Oil Pipeline's Fee Request (Feb 23)
 - Mozambique Approves Anadarko's $20 Billion Natural Gas Plan (Feb 07)
Company: ENI more info
Operates 12 Offshore Rigs
 - Eni Promises Richer Returns After Exploration Success (Mar 16)
 - Egypt's Potential Gas Surplus Could Feed Global LNG Glut (Feb 20)
 - Egypt With Eni to Fast-Track Zohr Gas Output, Minister Says (Jan 31)
Company: Sonatrach more info
 - Executives: Algeria's Sonatrach, Italy's Saipem Agree To End Disputes (Feb 14)
 - Algeria Sends More Oil To Cuba As Venezuelan Supplies Fall (Jan 10)
 - Algeria's Shale Gas Plans Will Take Time, Require Tough Reforms (Dec 29)
Company: Burlington Resources more info
 - Repsol Finds Gas in Peru's Block 57 (Jan 14)
 - Burlington Signs E&P Contracts for Blocks 123, 124 (Oct 02)
 - ConocoPhillips Reports Q2 Net Income of $5.2 Billion (Jul 26)
Company: Kellogg, Brown & Root more info
 - Woodside Awards Browse LNG Development Contracts (Feb 10)
 - ExxonMobil Awards KBR JV Services Contract for PNG LNG Project (Jun 04)
 - Two Charged in KBR Bribery Case (Mar 05)
Company: Teikoku Oil more info
 - Petrobras: $535 Million In Ecuador Investments On Hold (Apr 08)
 - Teikoku Acquires 35% Stake in Block 31 Offshore Suriname (Aug 29)
 - Venezuela to Resume Offshore E&P Gas Licensing (Jan 25)
Company: Maersk Oil & Gas more info
 - Maersk Energy Sees Uptick In Offshore Oil Drilling, Profit Still Squeezed (Feb 20)
 - Maersk Oil CEO To Step Down After Total Takeover (Sep 27)
 - Maersk Stands to Get Another $7.5 Billion for Energy Divestments (Aug 21)