Algeria Announces E&P Contracts
Algeria's council of ministers June 5 adopted presidential decrees relating to three exploration and production (E&P) contracts, according to state news agency APS. None though seem entirely new.
The first is a new contract for Timimoun blocks 325a et 329, awarded to state producer Sonatrach alongside Total and Spain's Cepsa. As the trio has been developing the Timimoun gas field in southwest Algeria for some time, producing first gas on February 24 2018, it's presumed these are additional blocks to what they already held.
Two E&P contracts were amended. One held by Sonatrach and Cepsa covering Rhourde Yacoub, block 406a, in the eastern Algerian Sahara is extended by up to 36 months.
The other relates to Italian utility Enel's transfer of its stake in the Tinrhert Nord blocks 235b, 244b and 223b to Dragon Oil. Sonatrach retains its majority 51% interest in the blocks, but Dragon – part of Dubai state-owned Emirates National Oil Company – will now hold the other 49% (previously 14.7%). Enel told NGW back in March it was no longer a partner in the blocks which are in the eastern Algerian Sahara.
Sonatrach meanwhile issued a statement June 4 about its agreement to develop phase IV of the Menzel Ledjmet oilfield, as mentioned by its CEO that day. The statement says the project is to increase Menzel Ledjmet Nord (MLN) production from 17,000 b/d now to about 30,000 b/d, for an overall investment of $430mn. Within that, Italian contractor Bonatti has been awarded a contract worth over $85mn, for work over the next three years, to increase gas injection capacity from 6.4mn m3/d now to 7.8mn m3/d by adding new equipment, drilling 20 new wells and working over 15 existing wells.