$2 billion oil and gas deal signed in Algeria
Sonatrach, Algeria's state-owned oil and gas company, has concluded an investment deal worth $2 billion with Malaysia's Petronas and France's Gaz de France, for the exploration and development of a new oil and gas field located in the Ahnet region, adjacent to the
In Salah gas project, 1,400 km southwest of Algiers in southern Algeria.
Under the terms of the agreement, which is scheduled to run over 25 years, Petronas will receive a 45 percent share of the new project, Gaz de France will receive a 25 percent share, and Sonatrach will be left holding 30 percent. Petronas and Gaz de France will pay a $45 million entrance fee.
The area in question covers seven blocks with a total area of 17,357 square kilometers.
The agreement covers the exploration, development and exploitation of its hydrocarbon resources, and particularly its gas resources, which are estimated to total 40 billion cubic meters.
The first stage involves the drilling of three exploitation wells and one appreciation well.
This latest agreement is the largest to be signed in Algeria since the country’s oil authorities signed the $2.5 billion In Salah gas project with BP Amoco in 1997.
The In Salah project is expected to go on stream by 2003 and will increase Algeria's gas production by 15 percent.
Algeria is Europe's largest gas supplier 60 billion cubic meters per year of gas exported each year. – (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)