Thailand’s Petroleum Authority for Exploration and Production (PTTEP) plans to invest $13 million in two oil fields in Algeria, known as onshore blocks 433a and 416b. Surveys indicated the two wells in northwestern Algeria hold a reserve capacity of one billion barrels.
PTTEP negotiating the deal as part of the state-owned company's ongoing efforts to find prospective strategic partners to invest in Middle East petroleum activities once the war in Iraq draws to an end.
Pending the approval of the Algerian government, PTTEP is set to acquire a 35 percent stake in two blocks. The project will be operated in partnership with PetroVietnam PetroVietnam Investment and Development Company (PIDC) and Algeria's national oil company Sonatrach. The two will own 40 and 25 percent of the joint venture respectively.
The company, primarily engaged in natural gas exploration, is looking to diversify its business by investing into oil exploration and production. Currently, PTTEP’s Middle East oil operations are limited to Oman, where seismic tests on block 44 are expected to be completed by early 2004.
The proposed nvestment in Algerian oil fields will be the company's first in North Africa. The invesment will cover the first three years of the project, including the cost of seismic surveys and the drilling of three wells. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
