Cepsa and Sonatrach have signed a concession contract with Algeria’s state oil licensing body Alnaft for the operation of the Rhoude el Krouf (RKF) oilfield located in the Berkine basin.
The new 25-year agreement includes the significant redevelopment of the mature oilfield following 19 years in production.
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Expected to involve an investment of $1bn, the programme aims to increase crude production from the field significantly by deploying new hydrocarbon recovery techniques.
It is also expected to generate between 1,000 and 1,500 jobs during the peak construction stage.
The scope of redevelopment encompasses drilling of 30 wells, construction of a new processing plant, including a LPG recovery unit, as well as necessary installations to procure LPG from the field.
The new facilities will have the capacity to process 24,000 barrels of crude oil per day and 10,000 barrels per day of LPG.
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By GlobalDataDiscovered 25 years ago, the RKF oilfield was the first resource put into operation by Sonatrach and Cepsa in Algeria.
The new contract builds on the earlier agreement signed between the two companies in November 2016.
In addition to the RKF field, Cepsa is involved in the operations of two other important oilfields in the Berkine basin, Ourhoud and Bir el M’sana, with its strategic partner Sonatrach.
In early 2015, both partners completed the exploration of the Rhourde er Rouni II deposit, which is also located in the Berkine basin and currently under development.
