First overseas production for Woodside
Posted: 28 October 2003
Woodside Energy Ltd. is about to earn its first revenue from non-Australian
oil and gas operations with first gas now flowing from the US$1
billion Ohanet gas and liquids stripping project in Algeria.
The Ohanet Project, in the Illizi province of Algeria about 1,300km
south east of the capital, Algiers, and 100km west of the Libyan
border, was commissioned within schedule and budget (Woodside’s
share US$154 million). It began exporting gas yesterday.
The new facility is expected to process up to 710 million standard
cubic feet of wet gas a day (20 million cubic metres) and export
daily a maximum of 30,000 barrels of condensate and about 26,000
barrels of liquefied petroleum gas.
Under the project’s risk service contract with Sonatrach,
Algeria’s national oil company, Woodside and its joint venturers
receive a share of condensate and LPG produced over eight to 12
years, with the proportion depending on market prices.
After eight to 12 years, the joint venture’s entitlements
revert to Sonatrach. The joint venture has no share in pipeline
sales gas which is owned and marketed by Sonatrach.
The project has been funded and executed by BHP Billiton (45 per
cent), in joint venture with the Japan Ohanet Oil & Gas Co,
(30 per cent); Woodside Energy (Algeria) Pty Ltd (15 per cent);
and Petrofac Resources (Ohanet) LLC (10 per cent).
Woodside’s acting Chief Executive Officer, Keith Spence,
said the start-up of Ohanet was an historic occasion for Woodside.
"This is a major milestone in Woodside's international growth
strategy,” Mr Spence said.
“We acknowledge the outstanding efforts of BHP Billiton to
make the project a technical and financial success with an outstanding
health, safety and environmental performance. “This is an
excellent basis on which Woodside can grow its African business
as Ohanet will provide a steady revenue stream and help to build
our production.
“Africa is one of our key development areas, offering many
opportunities to match our distinctive competitive capabilities
with new projects.”
Participation in Ohanet was part of an agreement with BHP Billiton
in December 2000 that provided access to several Algerian oil and
gas exploration and development opportunities, including the interest
in Ohanet. Woodside’s other African interests include projects
in other parts of Algeria, Mauritania, the Canary Islands, and Kenya.
For more information see www.woodside.com.au
Posted by Richard Price,
Editor Pipeline Magazine
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