Sonatrach Signs Major Agreement With Spain’s Cepsa Group

A major contract for the exploitation of the oil field of Rhoude el Krouf (RKF) in the basin of Berkine (Ouargla) was signed Thursday in Algiers between the Sonatrach hydrocarbons group, the National Agency for the upgrading of hydrocarbon resources (Alnaft) and the Spanish Cepsa energy group.

The contract was signed between the CEOs of Sonatrach, Agency Alnaft and Cepsa Group, respectively MM. Abdelmoumen Ould Kaddour, Arezki Hocini and Pedro Miro Roig.

The 25-year (2018-2043) agreement covers the significant redevelopment of a mature oil field after 19 years of production with the objective of scaling up crude oil production and production of LPG for the first time from this deposit, thanks to the new oil recovery techniques.

The development plan for this deposit includes the drilling of 30 new wells, the construction of a new processing plant, the recovery of LPG and setting up of facilities for the smooth shipment of LPG.

It should be noted that this major energy-related project, whose investment is estimated at $ 1.2 billion dollars, should have a significant economic impact and spawn between 1,000 and 1,500 jobs during the peak construction period.

Algeria says it expects gas output to reach 141.3 billion cubic meters (bcm) in 2017, 143.9 bcm in 2018, 150 bcm in 2019 and 165 bcm in 2020.

Oil production targets are 75 million tonnes of oil equivalent in 2017 and 2018, 77 million tonnes in 2019 and 82 million tonnes in 2020.

In 2015, gas production stood at 128.3 bcm, while oil output reached 67 million tonnes.