ALGIERS- Sonatrach oil and gas Group and Sinopec Oil & Gas Limited (SOOGL) sealed, Saturday, a US$490 million-worth production sharing contract on the Zarzaitine perimeter (province of Illizi).

Sonatrach oil and gas Group and Sinopec Oil & Gas Limited (SOOGL) proceeded, on Saturday in Algiers, to the signature of a production sharing contract relating to the contractual perimeter of Zarzaitine, located in the basin of Illizi, under the aegis of the law n 19-13 governing the hydrocarbon activities.

This 25-year contract was signed by the vice-president of exploration and production of “Sonatrach”, Mohamed Slimani, and the general manager of SOOGL, Wu Xiuli, during a ceremony at the headquarters of the general management of “Sonatrach”.

The signing ceremony took place in the presence of the Minister of Energy and Mines, Mohamed Arkab, the representative of the Chinese ambassador to Algeria, Chen Zhong, the CEO of Sonatrach, Toufik Hakkar, as well as representatives of both companies.

Under this contract, Sontrach and its Chinese partner undertake to carry out a programme of development and exploitation works in accordance with the agreed development plan, the objective of which is the extraction and upgrading of hydrocarbons in the Zarzaitine field.

The work programme includes the revamping of the Gas Lift Unit, the drilling of twelve (12) new development wells, work over for the recompletion of six (06) existing wells, the tie-in of new development wells and the maintenance of existing surface facilities, as well as the recovery of flared gases and the reduction of carbon emissions.

The signing of this contract is the result of the negotiations carried out within the framework of the memorandum of understanding signed between the two companies on 20 May 2021 and reflects the will of both parties to continue their historical partnership and to strengthen their cooperation in the field of hydrocarbon production.

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