Petroceltic Completes Sale of Stake in Algerian PSC

Independent oil and gas firm Petroceltic International announced Tuesday that it has completed its sale of an 18.375-percent interest in the Isarene production sharing contract to Algerian state oil company Sonatrach.

Petroceltic reported that the deal was effected via a sale-and-purchase agreement under which Sonatrach has acquired a further 18.375-percent interest in the Isarene PSC covering Blocks 228 and 229a. The terms of the deal provide for a consideration of up to a maximum amount of $180 million, which comprises a $20 million payment now and a further $140 million payment of Petroceltic's share of the Ain Tsila project's development cost, as well as contingent payments of up to $20 million based on the achievement of certain project-related milestones.

Following completion of the deal, Petroceltic has a 38.25-percent interest in the PSC and remains as operator of the license, while Sonatrach has a 43.375-percent interest. Enel maintains its 18.375-percent interest.

Petroceltic Chief Executive Brian O'Cathain commented in a company statement:

"We are delighted to announce the completion of the Sonatrach farm-out. Petroceltic has had a positive and mutually beneficial relationship with Sonatrach throughout the exploration, appraisal and now development phases of the Isarene PSC. The formal ratification of this agreement is a critical step in the overall funding plan for this development project. As development operations ramp-up, we look forward to continuing to work with Sonatrach and Enel to deliver the Ain Tsila Project and to maximise the value of this important national resource for Algeria."



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Sparrows Group Teams in Australia to D... (Mar 28)
 -  INPEX to Reorganize Natural Gas Busine... (Mar 28)
 -  Scottish Offshore Service Provider Pra... (Mar 28)
 -  GLA is 'Single Accumulation', Largest ... (Mar 27)
 -  Software Developer Mltech Completes Fi... (Mar 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
Staff Auditor 2
Expertise: Business Analyst|Risk Management
Location: TX
 
Business Development Manager
Expertise: Business Development|Sales
Location: Centennial, CO
 
Project Manager, USA
Expertise: Project Management
Location: United States
 
search for more jobs

Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours