The national hydrocarbons company Sonatrach announced, today, Thursday, in a press release the termination of the contract concluded with the company Petroceltic for the exploration and exploitation of hydrocarbons on the Isarène perimeter, “in compliance with provisions recognizing this right.”
“Sonatrach proceeded on April 12th, 2021 to the termination of the contract for the exploration and exploitation of hydrocarbons on the Isarène perimeter (blocks 228 and 229a), concluded on September 26th, 2004 with the company Petroceltic International PLC, under the Law No. 86-14 of August 19th, 1986, amended and supplemented, relating to the activities of prospecting, research, exploitation and transportation by pipeline of hydrocarbons”, said the same source.
The national company proceeded with this termination in accordance with the contract and in particular the clauses which recognize this right, adds the press release, while stressing that “Sonatrach exercised this right after having unsuccessfully asked Petroceltic to comply with its contractual obligations “.
Under the termination notification, Petroceltic is granted a deadline to transfer oil operations to Sonatrach, the national company said.
“Petroceltic, whose participation rate was around 75% when the contract was signed, significantly reduced its participation by two successive transfers of its rights and obligations formalized by amendments. At the date of termination, this rate was at 38.25% “, further noted the same source.
Approved in 2012, the development plan for this perimeter provides for its commissioning in 2017 with a production level of 10 million m3 per day of gas, 17 Thousand barrels per day of LPG and 11.5 Thousand barrels per day of Condensate.
To this end, Sonatrach has assured that it intends to continue the development efforts of this project with the objective of bringing this deposit into production in November 2022.