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Sinopec lands drilling rig contract at Ain Tsila gas field onshore Algeria

27th April 2015

Groupement Isarene, a joint venture comprising Sonatrach, Petroceltic and Enel, has award the contract for the provision of a drilling rig to Sinopec International Petroleum Service Corporation for the Ain Tsila gas and condensate field in Algeria

Groupement Isarene, a joint venture comprising Sonatrach, Petroceltic and Enel, has award the contract for the provision of a drilling rig to Sinopec International Petroleum Service Corporation for the Ain Tsila gas and condensate field in Algeria
The Groupement has launched the process to identify suitable companies to perform the engineering, procurement and construction contract via publication of an invitation to pre-qualify in the Algerian Bulletin of Public Tenders in the Energy and Mine Sector.

Groupement Isarene, the joint operating organisation responsible for executing the Ain Tsila field development plan established by Sonatrach, Petroceltic and Enel, successfully completed the tendering process resulting in the award and signature of the contract to Sinopec.

The 1,500 horse power rig, which is now built and ready to ship, will drill up to 24 new development wells. The first 12 drilling locations, all in the northern region of the field, have already been selected and approved. The award of the rig contract represents the achievement of a further milestone for the Ain Tsila project and will enable drilling to commence on schedule in 2015.

The front end engineering and design of the project which was awarded in September 2014 to Chicago Bridge and Iron is also progressing well.

The Groupement has launched the process to identify suitable companies to perform the engineering, procurement and construction contract via publication of an invitation to pre-qualify in the Algerian Bulletin of Public Tenders in the Energy and Mine Sector.

The Groupement is in receipt of a number of submissions, and it is anticipated that a shortlist of potential bidders who will be formally invited to tender for the EPC contract will be established shortly.

"We are pleased with the award of the rig contract to Sinopec, a company with extensive experience in Algeria,” said Brian O’Cathain, chief executive of Petroceltic. “This award demonstrates the significant progress that Petroceltic and its partners are making towards the development of the world class Ain Tsila gas condensate field. The next important project milestone will be the launch of the invitation to tender for the EPC contract which we expect to occur in the second quarter of this year. The project remains on track to deliver first sales gas in Q4 2018."

Petroceltic holds a 38.25 per cent interest in the Isarene PSC, Sonatrach has a 43.375 per cent interest and Enel an 18.375 per cent interest.

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