Algeria in $2b oil, gas deal with Malaysia, France
Algiers |Reuters | 21-01-01
Algeria's state oil and gas giant Sonatrach yesterday signed a $2 billion investment deal with
Malaysia's Petronas and France's Gaz de France (GdF) for the exploration and development of an
oil and gas field over the next 25 years, company officials said. Under the terms of the agreement,
Petronas will take a 45 per cent share of the project located in southern Algeria, Gaz de France 25
per cent and Sonatrach 30 per cent.
The three companies will work together on finding new oil and gas fields and build a
S380-kilometre pipeline. The deal covers "the exploration, development and exploitation in
partnership of hydrocarbon resources, particularly gas resources estimated at around 140 billion
cubic metres (5 trillion cubic feet) in the Ahnet region 1,400 kilometres south-west of Algiers," a
Sonatrach statement said.
The area, located near the big In Salah gas project, covers seven blocks totalling 17,357 square
kilometres. The agreement includes the drilling of three exploitation wells and one appreciation well.
The deal is the largest of its kind in Algeria since the North African country signed the $2.5 billion In
Salah gas project with BP Amoco three years ago.
That project is expected to go on stream by 2003 and will increase Algeria's gas production by 15
per cent. Algeria is Europe's biggest gas supplier with exports totalling 60 billion cubic metres per
year. Petronas and GdF will pay a $45 million entrance fee, the communique added.
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