Gas discovery in Algeria

21 April 2015

Repsol makes its third find in the Sud-Est Illizi block

  • Discovery has been made near Algeria’s border with Libya
  • Tests delivered a gas flow rate of 175,000 cubic metres a day
  • A condensate flow rate of 90 barrels a day was recorded

Spanish energy company Repsol has made a third discovery in Algeria’s Illizi basin, near the border with Libya, increasing optimism that the country will be able to stem the ongoing decline in its gas production over the long term.

The discovery was made by the Tan Emellel Sud-Ouest-2 (Teso-2) exploratory well.

Algeria’s state-owned energy company Sonatrach will hold a 51 per cent stake in the development and production phase of the project.

The remaining 49 per cent will be held by a consortium made up of the concession operator, Repsol, as well as Italy’s Enel and France’s GDF Suez.

Repsol holds a 52.5 per cent stake in the consortium, while Enel holds a 27.5 per cent stake and GDF Suez a 20 per cent stake.

The discovery was made at a depth of 1,307 metres and well testing with a 32/64-inch choke delivered a gas flow rate of 175,000 cubic metres a day (cm/d) and 90 barrels a day (b/d) of condensate.

Repsol is aiming to drill at least four more wells in order to appraise the discoveries it has made within the Sud-Est Illizi block.

The company currently has one producing project in Algeria, the Tin Fouye Tabankort natural gas field in Ouargla Province.

It is currently developing the North Reganne gas fields, located in the Algerian Sahara, with its partners Sonatrach, Germany’s RWE Dea and Italian energy company Edison.

On top of the Sud-Est Illizi concession, which was awarded in December 2009, Repsol also operates Algeria’s Boughezoul concession, which it was awarded in October 2014.

Repsol produces approximately 8,000 barrels of oil equivalent a day in Algeria.

The new discovery has been made about 100 kilometres from the In Amenas gas facility that was attacked by Al-Qaeda-linked terrorists in January 2013.

More than 60 people were killed in the crisis, including at least 39 foreign hostages.

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