Gas is now flowing from the project, in the Illizi province of Algeria about 1,300km south east of the capital, Algiers, and 100km west of the Libyan border, which was commissioned within schedule and budget (Woodside's share US$154 million) and began exporting yesterday.

The new facility is expected to process up to 710 million standard cubic feet of wet gas a day (20 million cubic metres) and export daily a maximum of 30,000 barrels of condensate and about 26,000 barrels of liquefied petroleum gas.

Under the project's risk service contract with Sonatrach, Algeria's national oil company, the joint venturers receive a share of condensate and LPG produced over eight to 12 years, with the proportion depending on market prices. After eight to 12 years, the joint venture's entitlements revert to Sonatrach.

The joint venture has no share in pipeline sales gas which is owned and marketed by Sonatrach.

The project has been funded and executed by BHP Billiton (45%), in joint venture with the Japan Ohanet Oil & Gas Co. (30%); Woodside Energy (Algeria) (15%); and Petrofac Resources (Ohanet) LLC (10%).

Woodside's acting CEO Keith Spence said the start-up of Ohanet was an historic occasion for Woodside.

"This is an excellent basis on which Woodside can grow its African business as Ohanet will provide a steady revenue stream and help to build our production," Spence said.

"Africa is one of our key development areas, offering many opportunities to match our distinctive competitive capabilities with new projects."

Participation in Ohanet was part of an agreement with BHP Billiton in December 2000 that provided access to several Algerian oil and gas exploration and development opportunities, including the interest in Ohanet.