13th Feb 2014 12:10
LONDON (Alliance News) - Petroceltic International PLC Thursday said it has agreed the sale of a 18.375% interest in the Isarene Production Sharing Contract in Algeria to Sonatrach for a maximum of USD180 million.
The oil and gas exploration, development and production company, with interests in the Middle East and North Africa and producing assets in Egypt and Bulgaria, said the production sharing contract includes the major Ain Tsila gas condensate discovery.
The deal was announced in October 2013 and has now been agreed towards completion.
The deal has been completed by way of a sale and purchase agreement which provides for a consideration of up to a maximum of USD180 million, comprising a USD20 million payment on completion, a USD140 million contribution toward development costs, and two contingent payments of USD10 million each based on the achievement of certain early production and technical completion milestones.
Petroceltic's share of the Isarene interest will drop to 38.25% following the transaction, while Sonatrach's will rise to 43.375%. Enel will hold the remaining 18.375%.
Sonatrach acquired the interests by exercising a previously agreed option. Operations in the development phase of the project will be undertaken by the Groupement Isarene, a joint venture between Sonatrach, Petroceltic and Enel.
The Isarene field is bordered by a number of fields with proven oil and gas production, such as the In Amenas project to the east, one of Algeria?s largest wet gas projects, and the Tin Fouye Tabankort field to the north.
Petroceltic shares were down 0.4% to 172.50 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
PCI.L