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Wintershall Dea Increases Stake In Algerian Gas Project

May 9, 2022

German oil and gas company Wintershall Dea has entered into a sale and purchase agreement to acquire Edison’s 11.25 percent participating interest in the Reggane Nord natural gas project in Algeria.

After the transaction is closed, the consortium Groupement Reggane Nord (GRN) – the operator of the project – will comprise Sonatrach, Wintershall Dea, and Repsol which will hold 40, 30.75, and 29.25 percent stakes, respectively. The transaction is subject, among others, to customary authority approvals.

Algeria has significant energy potential. The country is the third largest exporter of gas to Europe, after Russia and Norway, and is the largest natural gas producer in Africa.

Algeria is a prime candidate for an enhanced energy partnership with Europe, particularly at this critical time. Located just across the Mediterranean, the country has well-developed infrastructure connections to Europe.

These include two subsea gas pipelines and LNG facilities at two locations. In the long term, the country has major potential for climate-friendly hydrogen, solar and wind power, and carbon capture and storage.

On that basis, Wintershall Dea decided to grow its presence in Algeria. Dawn Summers, COO and responsible board member for the Middle East and North Africa said: “Algeria holds great potential for natural gas production and future energy projects. That is why we want to grow our presence in Algeria and contribute to the development of its energy sector. Increasing our interest in the Reggane Nord project is the first step.”

“Wintershall Dea has always been an active partner in the Reggane Nord project, and we are pleased to strengthen our role. The project has been reliably producing low-cost natural gas since 2017 and has a long future securing energy supply in Algeria and the region,” Thomas Ruttmann, Senior Vice President and Managing Director for Algeria, added.

This agreement comes after Wintershall Dea and Sonatrach recently extended a Memorandum of Understanding to consider new business opportunities in the field of gas production and low-carbon energy solutions.

Wintershall Dea first entered the Algerian market in 2002 and subsequently became a partner for the Reggane Nord project which comprises six gas fields over a 695 square mile area in the southwest of the country. The operator GRN marked first gas in 2017 and the project is expected to be in production until at least 2041.