Rhourde El Baguel oil field
Encyclopedia
Rhourde El Baguel Oil Field is an located in Ouargla Province
Ouargla Province
Ouargla or Warqla is a province in eastern Algeria. Its capital is Ouargla. Other localities include Temacine, Touggourt, and Hassi Messaoud. It contains the Issaouane Erg desert.-History:...

. It was discovered in 1963 and supposed to be developped by BP-SONATRACH in 1996.
This field REB
Reb
Reb is a Yiddish honorific traditionally used for Orthodox Jewish men. It is not a rabbinic title; it is the equivalent of the English "mister"...

 was found in 1962, the year Algeria gained independence from the French and was only operated by SONATRACH,

40.2 deg. API oil, is produced from a Cambrian formation at a depth of 9,850 feet.

It is the second largest oil producer field in Algeria, REB's recovery rate declined to 18% by 1995. In 1996, it was producing less than 25,000 b/d. On Feb. 15, 1996, Arco of the US (now part of BP) signed a $1.3 bn with Algeria, 25-year PSC(Production Sharing Contract). In 1995 it paid a signature bonus of $225m and agreed to pay a $300m entrance fee. It was to invest in an EOR(Enhaced Oil recovery)system and further development, with 38 new wells to be drilled (but never did any workover).

BP after the acquisition of arco raised the field's output to a 85,000 b/d peak in early 2000 for few months by gas injection,encouraged by this success BP decided to increase the pressure of the injected gas to optimize the production,this led to a total failiure and cracks appeared inside the field, its sustainable capacity was never more than 18,000 b/d. Now (2011) the production is averaging 20,000 b/d. The EOR technique failed due to the existance of cracks in the bottom well rock formation which led to the loss of the majority of the oil reserves.

Now BP and SH are going through an arbitration process regarding the objectives that were initially set in the PSC and never met by BP.

The total proven reserves
Proven reserves
Proven reserves, also called proved reserves, measured reserves, 1P, and Reserves, are business or political terms regarding fossil fuel energy sources....

of the Rhourde El Baguel oil field are around 3 billion barrels (410×106tonnes), and production is centered around 20000 bbl/d
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