GDF Suez Says Natural Gas Discovery Made in Southeast Algeria

PARIS, April 20 (Reuters) – French utility GDF Suez said on Monday that gas had been discovered in a region of southeast Algeria where it holds a licence with partners.

The discovery was made in the Illizi basin, where the company holds a 20 percent licence alongside operator Repsol with 52.5 percent and Enel with 27.5 percent. Sonatrach is to participate with a 51 percent stake in the development and productions phases.

GDF Suez said that a successful test produced a gas flow of 175,000 cubic meters per day. "Appraisal work will be conducted later to assess the size of the discovery," the company said in a statement.

The Illizi licence is GDF Suez's second in the country where its Touat project in the southwest is in the development phase and due to enter production in 2017.

(Reporting by Leigh Thomas; editing by Michel Rose)