Monday, November 27, 2006

Apache Corp. has received necessary approvals to build a fourth processing unit and increase output at its Salam natural gas plant in Egypt's Western Desert.

The Houston-based independent oil and gas producer said in a statement today that the Egyptian General Petroleum Corp. and the Egyptian Natural Gas Holding Co. have approved construction of a so-called processing train. Combined with another recently approved third train, the additions will increase gas processing capacity to 710 million cubic feet per day from current production of 512 million cubic feet per day.

The expansions, slated to be finished before the end of 2008, also will increase capacity to process condensate, or natural gas liquids, to 66,000 barrels a day from 18,200 barrels a day.

Apache has awarded $375 million in contracts to Petrofac Limited to build the third and fourth trains. Each of the units will be able to process 100 million cubic feet per day of sales gas and 14,000 barrels of sales condensate per day.