Circle Oil completes pipeline construction in Morocco

Circle_Oil_Morocco_1Circle Oil's new Sebou (DRJ)-Kenitra pipeline and associated infrastructure for its Rharb Basin permits in Morocco has been successfully completed within budget.

The pipeline is now undergoing pressure testing prior to commissioning and start up of increased gas delivery to the local industry which is expected to be completed at the of January.

Increased gas supplies and revenues

Prof Chris Green, CEO, said: "I am delighted to be able to report the completion of the construction phase for our new pipeline in the Rharb. Following completion of commissioning of the pipeline Circle and its partner can look forward to significantly increasing gas supplies and associated revenues to local industry through 2012."

Connected to seven potential wells

The total length of the pipeline is approximately 55km and has a design capacity of 23.5 MMscf/d. The pipeline has been connected to seven of the ten potential producing wells, with tie-in for the remaining wells scheduled for completion during the first quarter of 2012. These wells were discoveries made during the two previous drilling campaigns in 2008/09 and 2010/11.

Local subsidiary

Circle, through its wholly owned subsidiary, Circle Oil Maroc Ltd. holds a 75 per cent interest in the Sebou and Lalla Mimouna Permit Concessions with the remaining 25 per cent held by ONHYM.

In addition, it holds a 60 per cent interest in the Oulad N'zala Permit Concession with the remaining 40 per cent held by ONHYM. Circle has a 75 per cent interest in the new 8 inch pipeline with the remaining 25 per cent held by ONHYM

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