(Ecofin Agency) - Sonatrach and Cepsa have entered into an agreement to extend their partnership contracts for the Rhourde El Krouf and Ourhoud oil fields in Algeria, the state energy company said.
According to Sonatrach in a statement, the North African country has announced plans to increase oil and gas production after its unproductivity in recent years because of a lack of foreign investment.
Under the deal, the contracts for the Rhourde El Krouf oil field will be extended by 25 years while Ourhoud will be extended by 10 years, Energy-pedia reports.
The partnership contract for Ourhoud was expected to expire in 2019, the statement adding that the partners also signed a memorandum of understanding to explore opportunities in other areas where both companies have common interests in Algeria and beyond.
In 2015, gas production was at 128.3 billion cubic metres (bcm), while oil output reached 67 million tonnes. The OPEC member has said that it expects gas output to reach 141.3 bcm, 143.9 bcm, 150 bcm and 165 bcm in 2017, 2018, 2019 and in 2020, respectively, while oil production targets are 75 million tonnes of oil equivalent in 2017 and 2018, 77 million tonnes in 2019 and 82 million tonnes in 2020.