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."
WHAT DO YOU THINK?
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.
- Algeria Sends More Oil To Cuba As Venezuelan Supplies Fall (Jan 10)
- Algeria's Shale Gas Plans Will Take Time, Require Tough Reforms (Dec 29)
- Algeria's Sonatrach Chief Urges Oil Industry Reforms (Sep 18)
Company: Petroceltic International PLC more info
- Petroceltic Board Steps Down Following Survival Scheme Approval (Jun 17)
- At-13 Well in Algeria Hits 240-Foot Gas-Bearing Formation (May 23)
- Petroceltic Says Worldview To Take Control Of Group (May 12)