Encor Inc., Calgary, and Norcen International Ltd., Sydney, have signed a production sharing contract with Algeria's state owned Sonatrach.
In other Algerian action:
Encor-Norcen's PSC covers the 3,329,845 acre Mehaiguene block about 300 km south of Algiers and due west of giant Hassi R'Mel gas field.
Norcen said previous activity on the block has established the presence of hydrocarbons.
A 3 year exploration phase includes gathering and processing seismic and a three well drilling program. Drilling is to begin in second last half 1993.
Encor holds 55% working interest in the contract and will be operator, while Norcen holds the remaining interest. Norcen will bear costs of the seismic program.
Sonatrach will retain 51% of production from a discovery.
Bechtel has a $330 million contract to supply engineering, procurement, and construction management services for the renovation of the GL1-Z plant, and Kellogg a $163 million contract for the GL2-Z plant.
Both plants are at Bethioua near Arzew on the Mediterranean coast.
ExImBank will guarantee $280 million in financing for the U.S. exports and $49.5 million in financing for local costs for the Bechtel contract and $138.5 million in export financing and $24 million in local cost financing for the Kellogg project.
Lenders have not yet been selected.
Sofregaz will be responsible for project engineering, procurement, and start-up services for the gas compression project under a $52 million contract financed by World Bank.
The project calls for 70 MMcfd of gas to be taken from Alrar-Hassi R'Mel gas line and injected into Mesdar and Rhourde El Bagnel oil fields at an injection pressure of 5,221 psi for reservoir maintenance.
Sonatrach let contract to Algerian company GTP to build the station, which includes transmission lines, high pressure compressors, and a power plant.
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