In this connection, the two firms have signed a new concession contract for the RKF oilfield with Alnaft, Algeria’s oil licensing body. The contract happens to be the first production field in the country that will be governed under the hydrocarbon law 05-07.
The new agreement, which will have a term of 25 years, allows for the redevelopment of a mature oilfield, 19 years after being in production. The objective of the redevelopment project is to boost production of crude oil from the field significantly.
Discovered 25 years ago, the RKF oilfield was the first oilfield to be put into operation by Sonatrach and Cepsa in Algeria.
Its redevelopment will also pave way for the production of liquefied petroleum gas (LPG) for the first time, owing to availability of new hydrocarbon recovery techniques.
Cepsa, in a statement, said: “This agreement reflects Cepsa’s commitment to Algeria and it represents an important step for the project and the strengthening of the historical association between Cepsa and Sonatrach.”
According to Cepsa, the project will see drilling of 30 new wells along with construction of a new processing plant, an LPG recovery unit, and LPG shipping facilities.
The new treatment facilities will have a production capacity of 24,000 barrels of crude oil per day and 10,000 barrels per day of LPG.
Cepsa said that the design of the installations will be on par with the highest technical standards in the industry as far as efficiency, safety, and respect for the environment are concerned.
The redevelopment project is anticipated to have a major economic impact in the region through the creation of 1,000-1,500 jobs during the peak construction phase.
Image: The RKF oilfield in Berkine basin, Algeria. Photo: courtesy of Cepsa.
