The Algerian government has awarded Chinese oil firm Sinopec excavation rights to the Zarzaitine oil field. Valued at $525 million, the deal will increase the field’s recovery rate from 40 percent to 50 percent, reported APS.
The deal is China’s first major investment in Algeria. Sinopec has agreed to fund 75 percent of the project’s cost and Algeria’s government-owned Sonatrach will finance the remaining 25 percent needed to upgrade the field’s output.
The Zarzaitine oil field is located in Algeria’s southeastern Illizi Basin, pumping some two million tons of crude oil annually. With proven oil reserves officially estimated at 9.2 billion barrels, Algeria ranks as the world’s 16th largest oil producer, sitting atop nearly one percent of the world’s crude oil reserves. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
