Anakardo/Maersk Awarded Exploration Rights For Algerian Block 403c/e

Anadarko Petroleum together with its partner Maersk Oil, has been awarded exploration rights over Block 403c/e in Algeria's third licensing round. This increases Anadarko's gross acreage under contract in the Berkine Basin by around 400,000 acres to 4 million acres.

Anadarko and Maersk Oil expect to enter into a Production Sharing Agreement with Sonatrach within 15 days. Under terms of the PSA, Anadarko and Maersk Oil will shoot a minimum of 200 kilometers of 2D seismic and drill one exploration well during the first three-year period. Anadarko will hold a 67 percent interest in the venture, while Maersk Oil will take a 33 percent stake.

"We are excited about the potential of this block, which complements our current exploration portfolio very well," said Tony Meyer, Managing Director of Anadarko Algeria Company. "Block 403c/e is close to our existing production facilities at Hassi Berkine South, where Anadarko and its partners have built up substantial technical knowledge and seismic data. With this infrastructure already in place, future discoveries could be developed quickly and economically.

"This year will see Anadarko and its partners resume exploration drilling in Blocks 404 and 208 and undertake seismic activity on Block 406b, which Anadarko was awarded in Algeria's second license round in October," Meyer added.

This award follows a number of recent milestones that have been achieved by the Sonatrach/Anadarko Association. In April 2002, the fourth and final train at the Hassi Berkine South oil field's Central Processing Facility (CPF) began production five months ahead of schedule, increasing capacity to 285,000 barrels of oil per day; and cumulative production through the CPF surpassed 100 million barrels of oil in May. Additional facilities with a total capacity of 230,000 barrels per day are currently under construction at the Ourhoud field, the second largest oil field in Algeria. Production is expected to commence at Ourhoud in early 2003.

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&to=http://www.anadarko.com/' target=_blank>Anadarco Petroleum

&to=http://www.maersk.com/' target=_blank>Maersk Oil