Petronas wins Algerian project

Petronas wins Algerian project

KUALA LUMPUR (DPA): Malaysia's state-owned oil firm, Petronas, has been awarded a joint project to explore for gas in Algeria in a venture with Algerian and French firms, the company said on Monday.

Petronas will hold the majority 45 per cent share in the venture, with the Algerian oil firm, Sonatrach, holding 30 percent while Gaz de France has the remaining 25 per cent share.

Petronas will act as the lead operator of the venture to explore for on-shore gas in the Ahnet Block, southwest of Algiers, which is believed to hold 4.9 trillion standard cubic feet of recoverable gas reserves.

The three joint venture partners will invest 58 million dollars for the first five years of the project, which also includes building a 300-kilometer pipeline to connect to the In- Salah Gas Development Project undertaken by Sonatrach and BP Amoco.

The signing of the production sharing contract was held on Saturday in Algiers, a Petronas statement said, adding that Petronas' exploration arm, Petronas Carigali Overseas Sdn Bhd, will handle the project.