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China firm scores big oil find in Algeria

SPECIAL TO WORLD TRIBUNE.COM
Tuesday, March 13, 2007

CAIRO — A major energy reserve has been discovered in Algeria.

The state-owned China National Petroleum Corp. has found significant volumes of crude oil and natural gas in Algeria's northern Sahara Desert. On Thursday, CNPC said its Heba-1 well would produce at least 220,000 cubic meters of gas per day.

The Chinese company also reported the production of 4,410 barrels of light crude oil per day in Block 438B. It was the first announcement of a major energy find in Algeria in 2007, Middle East Newsline reported.

Executives said CNPC began drilling Heba-1 in February 2006. They said exploration of the block was difficult, with target reserves lying 3,600 to 4,200 meters below sea level.

Meanwhile, the United Arab Emirates has sought to become a global energy hub.

Officials said the UAE has discussed a proposal with Western majors to convert Abu Dhabi into a strategic operations energy center. They said the UAE has offered 100 percent ownership to foreign investors prepared to establish an energy services complex.

Under the proposal, Western majors would make Abu Dhabi the center of operations. The UAE contains scores of oil rigs and logistics that could rival such hubs as the U.S. city of Houston.

The UAE produces about two million barrels of oil per day. The emirates have also been linked by a natural gas pipeline to Qatar.


Copyright © 2007 East West Services, Inc.

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