ALGERIA - Oilfield Profiles - Agip - Bir Rebaa.

Agip, the first foreign company to produce oil in Algeria under a PSA, operates Bir Rebaa (BRN) whose output averages 46,000 b/d, down from 71,000 b/d in early 1999. Its sustainable capacity has fallen from 80,000 b/d in late 1998 to 55,000 b/d. BRN, in Zemoul El-Kebar permit (Block 403), 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.

The field came on stream in June 1995 at a capacity of 30,000 b/d of 41.5 deg. 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 decline in reservoir pressure. Exports began in October 1995. 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 $750m on the field. It has recovered all exploration costs. Development spending was split 50-50 with Sonatrach. Profit oil ranged 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 the 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 deg. 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 deg. oil without water, hydrogen sulphide or carbon dioxide. HBNN-2 in the first week of January 1997 tested more than 12,000 b/d of similar oil. But this major field proved to be an extension of Anadarko's Hassi Berkine field (HBN) in block 404. The two companies have since agreed on a joint development of the whole structure, now called El Biar, which should produce 75,000 b/d by 2002 (see below).

On June 3, 1996, Agip signed its fourth PSA with Sonatrach for Wadi El-Teh field, block 440, discovered by Sonatrach in the 1980s. This is in the Sahara about 1,000 km from the coast and 200 km south-east of Hassi Messaoud. Agip was to invest $21m in four years and drill at least three exploration wells. It was to cover all exploration costs and pay Sonatrach for what it had spent on previous exploration at the block. Sonatrach was to take 25% in development work and has an option to raise this to 35%.

On May 27, 1997, Agip signed a fifth PSA for the 2,284 sq km Block 213 in the Amedjene area, at the south-western edge of the Ghadames Basin and about 250 km to the south-east of Hassi Messaoud. Agip was to drill five exploration wells over five years at a cost of $31.7m.

In mid-1999, Agip bought 41.26% into Berkine Basin Blocks 401a and 402a operated by BHP Petroleum. 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 the US company Anadarko. The blocks contain the major ROD and SFNE oil finds. ROD and SFNE fields extend into Agip's Block 403a, which contains the oil producing BRN field (see OMT, page 6). Agip paid $42.3m for the 41.25%.

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