The Algerian state-owned company Sonatrach and Spain’s Cepsa signed an agreement to extend partnership contracts for the Rhourde El Krouf (RKF) and Ourhoud oil fields.
The contracts will be extended by 25 years and 10 years respectively, reported Reuters.
Sonatrach’s Chief, Amine Mazouzi and Cepsa’s CEO, Pedro Miro Roig signed the agreement. The two sides also signed a memorandum of understanding to explore opportunities in other areas where both companies have common interests in Algeria and internationally, according to Ecofin Agency.
Algeria has announced plans to boost oil and gas production after stagnation in recent years due to a lack of foreign investment. The country oil production targets are 75mt of oil equivalent during both 2017 and 2018, 77mt in 2019 , and 82mt in 2020. While It expects gas output to reach 141.3bcm in 2017, 143.9bcm in 2018, 150bcm in 2019, and 165bcm in 2020.
In 2015, gas production stood at 128.3bcm, while oil output reached 67mt. This comes as the company had achieved record high crude oil exports in October of 2.77m tons of oil equivalent, as opposed to the company’s usual monthly export volumes of 1.9m to 2m tons of crude oil per month.