Algeria approves additional clause in contract with Spain's Cepsa

Algiers, 17 Mar Algerian authorities announced Thursday the approval of an additional clause in the contract with the Spanish company Cepsa on the research and exploitation of hydrocarbons in the south of the country, according to the presidential decree published today in the official gazette. “Addendum No. 5 to the contract of 16 April 2000 for research and exploitation of hydrocarbons in the perimeter called “Rhourde El Rouni” (block: 401 c) is approved and implemented in accordance with the laws and regulations in force,” the decree indicated. According to the source, this new amendment included in the aforementioned contract was signed in Algiers on November 10, 2021 between Algerian state-owned hydrocarbons company Sonatrach and Spain's Cepsa. The Spanish company is considered a “historic” partner for Sonatarch, as the relationship between the two companies began in 1992 and they develop three oil fields in the Berkine basin: the Rhourde el Krouf (RKF) field - the first oil field put into operation by Cepsa in Algeria - Ourhoud (ORD), which became the second largest camp in the country, and Bir M×Sama (BMS). There are currently four contracts for the production and exploitation of hydrocarbons in force until 2040. There is also a commercial relationship in the natural gas and liquefied natural gas (LNG) sector. Cepsa also participates in the Timimoun natural gas field, in the southwest of the country. The fields in which Cepsa participates produce a total of more than 110,000 barrels equivalent per day. CHIEF no/lfp/mmg