The Algerian group “Sonatrach” and the Chinese “SOOGL” (SOOGL) announced on Saturday the signing of an “oil production sharing” contract at a site in southeastern Algeria, worth $ 490 million.
The 25-year contract provides for the realization of a “project aimed at extracting approximately 95 million barrels of crude reserves” around Zerzaitein in Illizi province, according to a statement from the official APS news agency .
The agreement was signed by the vice president in charge of exploration and production activities at Sonatrach, Mohamed Soleimani, and the general manager of “Sinopec Overseas Oil and Gas Limited” (Sougel), Wu Xiuli.
It was not disclosed how the components were distributed between Sonatrach and Soogel.
In early January, the Sonatrach group announced investments worth $ 40 billion between 2022 and 2026 in oil exploration, production and refining, as well as in gas exploration and extraction.
The group’s CEO, Tawfiq Hakkar, said in January that the group’s revenue would rise 70% in 2021 thanks to a 19% increase in its oil and gas exports.
Algeria, the fourth largest economic power on the African continent, is witnessing changes in hydrocarbon prices, due to its reliance on oil and gas revenues, which represent more than 90%. of its foreign income.
Source: Wakat
Source: Arabic RT
