Algeria’s state-owned oil company, Sonatrach, has signed a contract worth $800 million with Indonesia’s Pertamina and Spain’s Repsol to undertake joint exploration and production of hydrocarbons. The contract stems from a memorandum of understanding signed by the three companies on September 28, 2022.
The contract entails an ambitious work program, which includes several key projects. Among them are the construction of an LPG (liquefied petroleum gas) extraction unit, the drilling of twelve oil wells, and one water injection well. The program also involves connecting new development wells, maintaining existing installations, acquiring 3D seismic data, implementing a Water Gas Alternated (WAG) project, undertaking a digitization project, conducting a laboratory study on enhanced oil recovery (EOR), and establishing a solar energy production project.
To support these initiatives, the consortium plans to invest over $800 million in the implementation of the development plan. This substantial investment aims to facilitate the recovery of approximately 150 million barrels of oil equivalent.
Algeria, being a significant player in the global energy market, has actively sought strategic partnerships with international companies to maximize the potential of its hydrocarbon resources. The collaboration with Pertamina and Repsol not only showcases Sonatrach’s efforts to attract foreign investments but also demonstrates Algeria’s commitment to leveraging its partners’ expertise and technological capabilities to drive sustainable growth in the energy sector.
