Algeria’ Sonatrach Announces New Contract Signing with Indonesia’s Pertamina and Spain’s Repsol
BY/ Hana Saada
ALGIERS- Sonatrach, Algeria’ state-owned oil and gas company, has signed a new hydrocarbon contract with its partners, Pertamina and Repsol. The contract pertains to the Menzel Lejmat contractual perimeter, specifically Block 405a. This production-sharing agreement is a result of a memorandum of understanding signed between the three companies on September 28, 2022.
It is important to note that Pertamina, an Indonesian company, and Repsol, a Spanish company, are already Sonatrach’s partners in the Lejmat and Oulad N’sir contract, which includes blocks 405 and 215. Under this contract, the consortium operates several deposits, including MLN and Satellites (09 deposits), the unitized deposit of Ourhoud, and the unitized deposit of El Merk.
The newly signed contract outlines an ambitious work program. Key elements of the program include the construction of an LPG (liquefied petroleum gas) extraction unit, the drilling of twelve oil wells and one water injection well, the connection of new development wells, and the maintenance of existing installations. Additionally, the program encompasses the acquisition of 3D seismic data, a Water Gas Alternated (WAG) project, a digitization project, a laboratory study on enhanced oil recovery (EOR), and a solar energy production project.
To support these activities, the consortium plans to invest over $800 million in the implementation of this development plan. This substantial investment aims to facilitate the recovery of approximately 150 million barrels of oil equivalent.
The signing of this contract signifies the commitment of all parties involved to continue their partnership within the Menzel Lejmat contractual scope. Furthermore, it reflects their determination to strengthen cooperation in the field of hydrocarbon exploration and production.
Algeria, as a major player in the global energy market, has been actively seeking strategic partnerships with international companies to maximize the potential of its hydrocarbon resources. The collaboration with Pertamina and Repsol not only demonstrates Sonatrach’s efforts to attract foreign investments but also showcases Algeria’s willingness to leverage the expertise and technological capabilities of its partners to drive sustainable growth in the energy sector.
