Algeria’s state oil firm Sonatrach and Spain’s CEPSA agreed to extend their two oil field contracts in the North African country, the Algerian firm said on Tuesday.
Under the agreement, contracts for the Rhourde El Krouf (RKF) and Ourhoud oil fields will be extended by 25 years and 10 years respectively, Sonatrach said in a statement carried by the state news agency APS. The previous Ourhoud licence was due to expire in December 2019.
Cepsa, fully owned by Abu Dhabi’s International Petroleum Company (IPIC), and Sonatrach also signed a memorandum of understanding to “explore opportunities in other areas where both companies have common interests in Algeria and internationally,” the statement said.
The agreement was signed by Sonatrach chief executive Amine Mazouzi and chief executive of Cepsa Pedro Miro Roig.
OPEC member Algeria has announced plans to boost oil and gas production after stagnation in recent years due to a lack of foreign investment.
Algeria says it expects gas output to reach 141.3 billion cubic metres (bcm) in 2017, 143.9 bcm in 2018, 150 bcm in 2019 and 165 bcm in 2020.
Oil production targets are 75 million tonnes of oil equivalent in 2017 and 2018, 77 million tonnes in 2019 and 82 million tonnes in 2020.
In 2015, gas production stood at 128.3 bcm, while oil output reached 67 million tonnes.