Private equity-backed Neptune Energy has announced that first gas exports have taken place from the Touat gas development in Algeria.

Touat will deliver around 75,000 barrels of oil equivalent per day gross production at plateau. Neptune’s net production will be about 16,000 boepd.

The project is led by Groupement Touat Gaz (GTG Partners), consisting of Neptune Energy Touat (65%) and Sonatrach (35%).

Neptune Energy Touat is a partnership of Neptune 54% and Engie on 46%.

The remote development, located about 1400 kilometres south-west of Algiers and close to Adrar, comprises 19 development wells, a gas treatment plant for gas and stabilised condensate with a gathering network and export pipelines.

Production from Touat will represent about 6% of Algeria’s total gas exports.

Production is planned to last for more than 20 years.

The project has involved the installation of a connection to the main GR5 pipeline, built by Sonatrach, to collect the gas from south-west Algeria and bring it to Hassi R’Mel, about 800 kilometres to the north.

It is Neptune’s first project in North Africa.

Neptune chief executive Jim House said: “We have made significant investment in the Touat project and this milestone represents a series of firsts for our business; the first North Africa project we have seen over the line and the first we have taken forward as an operator in the country, alongside our partner Sonatrach.

“Algeria is of great strategic importance for our global gas production portfolio and this development underlines the substantial commitments we have made to both enhancing our footprint in the country and to building on our strong, long-term relationship with our partners.”

Philip Lafeber, Neptune vice president for North Africa & Asia Pacific said that with phase one of the project complete, the company will now look forward to implementing phase two, which covers the remaining eight fields to help maintain the plateau of 450 million cubic feet per day for many years to come.

Two weeks ago Neptune lowered its production guidance slightly for the year due to the later than expected start-up of Touat.

Neptune said it is now expecting to produce between 150,000 and 155,000 barrels of oil equivalent per day in 2019, down from earlier guidance in April of 155,000 to 160,000 boepd.

It said at the time that first gas exports from Touat gas project were expected slightly later than expected due to delays with a pipeline but were “imminent”.

The ramp up of the project is expected to be short, Neptune said.

Production

Neptune exports first Touat gas