Petroceltic International concludes gas sales agreement on Ain Tsila field with Algeria

gas-todbaker-flickrSub-surface engineering and geoscience activities will focus on optimising a development plan. (Image source: Todbaker/Flickr) Irish oil and gas exploration company Petroceltic International has concluded a gas sales agreement with the Algerian government on the Ain Tsila field, located in the Illizi Basin

Officials from Petroceltic International said that the gas sales agreement was awarded after executing legal terms for gas sales agreement with the state-run hydrocarbon company Sonatrach in 2012. All operational procedures and processes required for gas nominations and payments had been signed by all partners.

In addition, Chicago Bridge and Iron (CB&I) was awarded a Front End Engineering and Design (FEED) contract for work on the gas field, added company officials. The contract was given by Groupement Isarene, a JV between Sonatrach, Petroceltic International and Enel Trade.

CB&I officials stated that the scope of this project includes FEED development for a grassroots 11mn cu/m per day gas plant facility, in addition to three associated pipelines and well collection. The gas plant facility will include a gas processing plant with water separation, condensate and liquefied petroleum gas recovery equipment, gas compression, export pumps and metering facilities.

During the course of the FEED studies, the project cost estimate and schedule will be updated and the major project related construction contracts are expected to be tendered in late 2014 and awarded in 2015. Sub-surface engineering and geoscience activities will focus on optimising the development plan prior to the commencement of drilling in early 2015.

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