Cepsa To Redevelop Algeria Oilfield
Spanish refiner Cepsa (owned by Abu Dhabi state IPIC), Algerian state producer Sonatrach and the country's upstream regulator Alnaft signed a new concession contract January 18 in Algiers for the operation of the Rhoude el Krouf (RKF) oilfield, located in the Berkine basin in Algeria.
Lasting for 25 years, it will entail the significant redevelopment at a cost of $1bn of a mature oilfield after 19 years of production by Cepsa and Sonatrach, with the objective of significiantly increasing crude oil production and producing LPG (liquid petroleum gas) for the first time, thanks to new hydrocarbon recovery techniques for this field. It follows on from an agreement signed by Cepsa and Sonatrach in November 2016. Cepsa said the new contract will be the first production field in Algeria that will be governed under the hydrocarbon law 05-07.
Last month BP, Statoil and Sonatrach agreed to invest a further $500mn to redevelop Algeria's 9bn m3/yr In Amenas gas field, extending and increasing gas production levels.
Cepsa also participates in Timimoun gas field development, in southwest Algeria, with Total and Sonatrach that is scheduled to start producing in spring this year. Cepsa also has a 42% stake in the Medgaz pipeline, the second of two gas pipelines built from Algeria to Spain. Medgaz, which is Cepsa-operated, has a transport capacity of 8bn m3/year and is 210 km long.