The Algerian Energy Sonatrach Company said – yesterday, Tuesday, that it had signed a contract with the Chinese Sinopk to develop and explore oil and gas in Algeria, at a value of $ 850 million.
The company added in a statement, “Sonatrach and Senopik are committed through this contract to implement a preliminary business program for research and evaluation with the aim of valuing and developing fuel in the vicinity of Hassi Berkane, the northern volcano … between the states of Ouargla and Al -Manbia.”
Cinopk has been in Algeria since 2002, as it operates in partnership with Sonatrach in the Zarzitan reservoirs.
The Algerian News Agency stated that the agreement comes according to the formula for production sharing, after direct negotiations that took place between the two sides.
The contract extends to 30 years, which can be extended for another 10 years, provided that “Cinoopk” funds the full exploration operations, while subsequent investments are shared by 70% for the Chinese company, and 30% for Sonatrach.
The Agency quoted the Algerian News of the CEO of Sonatrach, Rashid Hashishi, as saying – during the signing of the agreement – that the company is currently negotiating with 7 international companies on hydrocarbons, including Sinopik, Italy, French Total, Chevron and Exxon Mobil, in addition to a Swedish company.
Hashishi added that the signing of these contracts will be in a row during the coming period.
He described the negotiations by Sonatrach with various companies regarding fuel contracts as “arduous”, indicating in this regard that Sonatrach held at least 140 negotiating meetings during the recent period.
