Sonatrach Inks MoU with ExxonMobil on Exploration Studies in two Basins - Africa’s premier report on the oil, gas and energy landscape.

Sonatrach Inks MoU with ExxonMobil on Exploration Studies in two Basins

Algeria’s state hydrocarbon firm Sonatrach has signed a memorandum with ExxonMobil to explore opportunities in the Ahnet and the Gourara basins in the south of the country.

It’s a preliminary agreement, jointly signed in Algiers by Rachid Hachichi, Sonatrach’s chief executive and John Ardill ExxonMobil’s head of exploration. The deal did not give a figure for the scale of the investment or for the potential reserves in the two basins.

Sonatrach has recorded one undeveloped gas discovery each in the two basins: OTS-2 (Oued Tesa Araret-2), located on the perimeter Tidikelt (Block 338a) in the Ahnet Basin and TNK-1 (Tinerkouk-1) well on the perimeter Hassi Mouina (block 321b) in the Gourara Basin.

The state-owned firm had a 100% stake in the OTS-2 in the Ahnet Basin at the time of the discovery. It produced gas from two reservoir formations encountered at depths of less than 1200 metres. The gas flows on a 32/64″ choke were respectively 9743 cubic metres per hour with a wellhead pressure of 1280 psi and 5737 cubic metres per hour with a pressure of 682 psi, according to a Rigzone report.

The TNK-1 (Tinerkouk-1) discovery in the Gourara Basin was made in partnership with StatoilHydro. The well produced gas from the Carboniferous reservoir about twenty meters thick. The gas flow were approximately 6971 cubic metres per hour with a pressure of 1109 psi on a 32/64″ choke. This well is.

The new agreement is symbolic in the sense that it is with an American supermajor. Sonatrach. After struggling to attract interests from international majors since its Hydrocarbons Laaw of 2005, which has now been extensively reviewed in the last five years, Sonatrach had managed to W win over European players including ENI and TOTAL. This deal with ExxonMobil,  “opens up new development prospects for the Algerian mining sector and demonstrates the willingness of both companies to establish responsible and sustainable exploitation of natural resources”, says Hachichi.

Ardill said ExxonMobil would contribute its “cutting-edge capabilities” and said the agreement was a “first important step in creating a partnership that will further unlock the development potential of Algeria’s resources”.



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