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Wednesday, January 8, 2014
Petroceltic International has continued to make progress on its Ain Tsila development in Algeria’s Isarene Block over 2013. Part of that progress included the establishment of the Groupement Isarene which is a joint development organization staffed by seconded personnel from Petroceltic, Enel, and Sonatrach.
The Groupement has opened an office in Algiers and recently issued invitations to qualified parties to undertake the FEED study for the Ain Tsila development, with a view to awarding the FEED contract during Q1. Looking further ahead, detailed planning has also commenced in relation to the sequence and timing of development drilling activities, while the detailed Gas Sales contract is substantially agreed and should be signed during Q1. The development plan remains on schedule, and Petroceltic is targeting first gas from the Ain Tsila field in late-2017.
Also during the period the company finalized arrangements for a second farm out of an 18.375% interest in the Ain Tsila project to an international oil and gas company. As part of this process, Sonatrach and Enel each had the right to pre-empt the transaction on similar commercial terms and in October 2013, Sonatrach chose to exercise that right in respect of the entire 18.375% interest. Finalization of the text of the amendment to the PSC necessary to give effect to this transfer is at an advanced stage and further announcements will be made as appropriate. Upon completion, Sonatrach will pay Petroceltic $20 million of cash, and fund a minimum of $140 million of Petroceltic’s development expenditure obligations from the effective date in July 2013.
Brian O’Cathain, Chief Executive of Petroceltic commented: “2013 was a year of solid progress, with highlights including the successful farm-out of the Ain Tsila Field in Algeria. We are looking forward to significant progress on the Algerian Ain Tsila development in 2014.”
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