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Monday, January 19, 2015
The FEED contract awarded to Chicago Bridge and Iron Company by the joint development partners for Algeria’s AinTsila field – Petroceltic, Enel, and Sonatrach, or collectively GroupementIsarene–will lead to the award of another major contract in 2015. According to Petroceltic the FEED will form the basis for tendering the major EPC contract for the project, as well as the award and commencement of construction.
The partners hope to launch construction in late-2015/early-2016. This timing, according to Petroceltic, should allow the project to benefit from an industry-wide softening in materials and construction rates. The development plan remains on schedule, and they are targeting first gas from the AinTsila field in H2 2018.
During 2014, Petroceltic successfully completed a second farm-out of an 18.375% interest in the AinTsila project to Sonatrach. The transaction required Sonatrach to pay Petroceltic an upfront cash payment of $20 million, and fund $140 million of Petroceltic’s development expenditure obligations from the effective date of July 4, 2013; the company still has approximately $120 million of the carry remained available. Petroceltic said based on the forecast for 2015 expenditure levels, the carry should ensure that capex will be fully funded until after work has commenced on the EPC contract and into Q2 2016.
Post completion of the second farm-out to Sonatrach in July 2014, Petroceltic has a 38.25% interest, Sonatrach has a 43.375% interest, and Enel maintains its 18.375% interest. Petroceltic remains operator of the license.
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