REPSOL (REP) has signed with Algeria’s state-owned Sonatrach and Indonesia’s Pertamina an alliance for the exploitation of hydrocarbons in the Menzel Lejmat area in Algeria, in which they will invest a total of $800 million (about €731 million). This production-sharing contract is part of the memorandum of understanding signed between the three companies on 28 September last year and the project is estimated to recover around $150 million (about €731 million). The project is estimated to recover around 150 million barrels of oil equivalent, the Algerian state-owned company said.
REP and Pertamina are Sonatrach’s partners in the Lejmat and Oulad N’sir contract (blocks 405 and 215). The alliance operates under this contract, the MLN & Satellites deposits (09 deposits), the unified deposit of Ourhoud as well as the unified deposit of El Merk. Specifically, the plan includes the construction of an LPG extraction unit; the drilling of twelve oil wells and a water injection well; as well as the connection of newly developed wells and maintenance of existing facilities; a WAG (Water Alternating Gas) project and a solar generation project; among others.
Sonatrach indicated that the signing of this contract reflects the willingness of the parties to continue their partnership within the contractual scope of Menzel Lejmat and to strengthen their cooperation in the field of hydrocarbon exploration and production.
