DEA Deutsche Erdoel AG said it signed a preliminary agreement with Algeria’s Sonatrach for upcoming upstream projects in the country.
“This (agreement) builds on the existing business relationship between DEA and Sonatrach and paves the way for further cooperation of the two companies,” said Dirk Warzecha, CEO of DEA, the German oil and gas company. “It also reflects DEA’s long-term commitment to Algeria and represents a good opportunity for us to access additional business opportunities in one of our core countries.”
The two companies signed the agreement in Algiers on Dec. 5, outlining the framework for DEA’s potential participation.
“DEA has been active in Algeria for more than 15 years. We welcome the opportunity to cooperate with SONATRACH in identifying oil and gas projects of common interest in Algeria and we hope that this will result in significant value creation potential for both parties,” said Sameh Sabry, the new general manager for DEA in Algeria.
DEA participates in the Reggane Nord project in the Algerian Sahara with a 19.5 per cent working interest. Reggane Nord comprises of six gas fields under development, which are planned to be brought on stream in the coming few months.
Algeria is among the top African natural gas producer and supplier to Europe.