ALGERIA - Agip - Bir Rebaa.

Agip, the first foreign firm to produce oil in Algeria under a PSA, operates Bir Rebaa (BRN) and satellite fields where the production rate has fallen from 80,000 b/d in 1998 to 20,000 b/d. BRN, in Zemoul el-Kebar permit, was found in early 1990 in a Triassic reservoir at a depth of 3,880 metres. Its northern extensions were found in the following two years in Triassic and Devonian reservoirs at depths of up to 3,950 metres.

BRN came on stream in June 1995 at 30,000 b/d of 41.5[degrees] API oil - with 150 CM of gas per CM of oil. The capacity rose in two phases to reach 75,000 b/d in early 1997 and 80,000 b/d in late 1998. But it fell with a steady decline in reservoir pressure. Exports began in October 1995. Now Agip maintains production at 20,000 b/d by adding to the first stream satellite fields. The oil is carried by a 20-inch, 230-km pipeline to the Mesdar storage and transfer station. From there it is pumped to Haoud el-Hamra terminal through a 26-inch pipeline. Agip has spent over $775m on the field. It has recovered all exploration costs. Development spending was split 50-50 with Sonatrach. Profit oil was from 65-35 in Sonatrach's favour for up to 15,000 b/d, to 87.5-12.5 for over 75,000 b/d.

Agip was the first on Dec. 17, 1991, to sign a PSA under a new law. This covered the 6,800 sq km East Zotti permit, Blocks 431 and 216. It was the third acreage held by Agip. It has made big oil finds in its Zemoul el-Kebar blocks 403 and 403A, in Erg Oriental 180 km east of Hassi Messaoud.

In block 403 it has found Bir Rebaa's extensions and Rhourde Messaoud field. The latter has five pay zones at depths of 3,307 to 3,587 metres and in 1986 tested about 5,000 b/d of 40[degrees] APS oil in an area close to el-Borma field near the Libyan border.

In Block 403a, Agip in early 1996 found Hassi Berkine North and the well HBNN-1 flowed at 15,000 b/d of 41[degrees] oil without water, hydrogen sulphide or carbon dioxide. HBNN-2 in January 1997 tested more than 12,000 b/d of similar oil. But this major find proved to be an extension of Anadarko's Hassi Berkine field (HBNS) in block 404a. The two companies and their partners have since agreed on a joint development of the whole structure (see Anadarko profile above - see background of Agip operations in Vol. 60, Gas Market Trends No. 6).

In mid-1999, Agip bought 41.25% into Berkine Basin Blocks 401a and 402a operated by BHP Petroleum (now an Anglo-Australian group called BHP Billiton). This resulted in its purchase of 13.75% held by Lasmo (a UK company bought by Agip in early 2001) and 27.5% held by Anadarko and Maersk.

The blocks contain the major Rhourde Ouled Dejmaa (ROD) and SFNE oilfields. ROD and SFNE extend into Agip's Block 403a, which contains the oil producing BRN field.

Lasmo (Agip) has 25% in Blocks 404/404a, 208 and 245 in which Anadarko is operator. Lasmo has 32.67% and the operatorship in the el-Ouar and In Amedjene North (IAN) blocks, at the southern end of the Berkine Basin, which it got in 1999 as it purchased Monument Oil & Gas of the UK. The other partners in these two gas/condensate blocks are Sonatrach (51%) and Asamera (a unit of Gulf Canada). Finds in them are being developed.

In March 2001 Agip sold to Teikoku Oil of Japan 20% in Block 222b in eastern Algeria for $1.6m. Tullow Oil of Ireland holds 30% in this block, where Agip began exploration drilling in mid-2002. (See other Agip interests on following pages).

Integrated development of ROD, SFNE, BRN, BSF, RDB and a satellite field has led to a joint Agip (63.96%) and BHP (36.04%) venture operated by BHP Billiton.