Spain’s Compania Espanola de Petroleos SA (CEPSA) and Algeria’s Sonatrach have signed an agreement that will have particular relevance to oil field contracts in Algeria. CEPSA has maintained its exploration and production activities in that country for the past 30 years “without interruption,” the company said.
The agreements, which were signed Nov. 22 by CEPSA Chief Executive Officer Petro Miro and Sonatrach’s counterpart, Amin Mazouzi, will present the “potential to study other opportunities beyond [the] upstream sector.”
Both companies also have signed a memorandum of understanding to “study collaborating on new opportunities in other business areas where both companies share interests, as much in Algeria as in other countries.”
RKF oil field, which lies in the Berkine basin, is operated under Sonatrach-CEPSA collaboration. RKF, which produces an average of 11,000 b/d of oil, was the first oil field put into production by CEPSA in Algeria in 1996.
CEPSA also continues to work with Sonatrach and other firms in Ourhoud oil field, also in the Berkine basin.
Together with Sonatrach, CEPSA also operates other oil fields including Bir el Msana (BMS) and Rhourde er Rouni II.
CEPSA holds a 42% stake in the subsea gas pipeline, Medgaz, which links Algeria and Europe through Spain.