Gazprom Netherlands and the Algerian State Oil and Gas Corporation (ASOGC) Sonatrach have signed an agreement for the transfer of rights for hydrocarbon exploration and production in the onshore area El Assel, located in the Berkine
Basin of Algeria.
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Gazprom’s share in the project will account for 49 per cent. According to provisional estimates the recoverable oil reserves of the said area amount to some 30 million tonnes. El Assel includes three blocks covering a total of 3083
square kilometers.
The agreement will enable Gazprom to initiate in Algeria its first hydrocarbon exploration and production project, with an aim to boosting opportunities in the surrounding territories.
Late last year Gazprom was announced the winner of the hydrocarbon exploration and development tender for the onshore area El Assel.
Algeria’s proven natural gas reserves total 4.58 trillion cubic meters (the second-largest in Africa after Nigeria’s reserves – 5.15 trillion cubic meters). The main location of the natural gas reserves is concentrated in the central and eastern parts
of the country.
The country’s proven oil reserves amount to 1.58 billion tonnes (the third-largest in Africa after Libya and Nigeria’s reserves). In the energy balance of Algeria natural gas accounts for 62.5 per cent, oil – 34.5 per cent, coal – 2.5 per cent, hydro energy – 0.5 per cent.
The Algerian State Oil and Gas Corporation Sonatrach deals with oil and natural gas exploration, transportation and marketing, whilst also controlling the bulk of gas production and wholesale trade.
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