PTTEP Acquires Stake in Algerian Blocks

PTTEP is in the process of negotiation for joint venture participation in onshore petroleum exploration blocks 433a and 416b in Algeria which are located near Touggourt in the southeast of Algeria, covering an area of 6,472 square kilometers and about 50 kilometers from Hassi Messaoud, a large oil field which produces approximately 400,000 barrel of oil per day. The partners will be PetroVietnam Investment and Development Company (PIDC) (the Operator), PTTEP, and Sonatrach (Algeria National Oil Company). The participation interest will be 40%, 35%, and 25% respectively.

PTTEP expects to spend, according to its participation interest, approximately USD 13 million for the first three years of the exploration phase, which will include seismic surveys and the drilling of 3 exploration and delineation wells. The participation in this project will be valid after the effectiveness of the PSC contract and the approval by the Algerian government.

PTTEP has been interested in expanding its exploration and production investments in the North African region, where potential for petroleum reserves is considered to be one of the world’s highest. This is in line with the Company’s overall strategy to expand its investment base in this region.