Algeria’s state-owned oil company, Sonatrach, signed on Thursday a contract worth $800 million with Indonesia’s Pertamina and Spain’s Repsol to jointly explore and produce hydrocarbons.

This production-sharing agreement is a result of a memorandum of understanding signed between the three companies on September 28, 2022.

The newly signed contract outlines an ambitious work program. Key elements of the program include the construction of an LPG (liquefied petroleum gas) extraction unit, the drilling of twelve oil wells and one water injection well, the connection of new development wells, and the maintenance of existing installations. Additionally, the program encompasses the acquisition of 3D seismic data, a Water Gas Alternated (WAG) project, a digitization project, a laboratory study on enhanced oil recovery (EOR), and a solar energy production project.

To support these activities, the consortium plans to invest over $800 million in the implementation of this development plan. This substantial investment aims to facilitate the recovery of approximately 150 million barrels of oil equivalent.

Algeria, as a major player in the global energy market, has been actively seeking strategic partnerships with international companies to maximize the potential of its hydrocarbon resources. The collaboration with Pertamina and Repsol not only demonstrates Sonatrach’s efforts to attract foreign investments but also showcases Algeria’s willingness to leverage the expertise and technological capabilities of its partners to drive sustainable growth in the energy sector.