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Cespa and Sontrach sign a new exploitation contract with Alnaft for the RFK field in Algeria

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Oilfield Technology,

Cepsa, Sonatrach and Alnaft, the National Resources Development Agency of Algeria, have signed a new concession contract today for the operation of the Rhoude el Krouf (RKF) oilfield, located in the Berkine basin in Algeria.

This new agreement, which will last for 25 years, entails the significant redevelopment of a mature oilfield after 19 years in production with the objective of increasing crude production significantly and producing LPG for the first time, thanks to new hydrocarbon recovery techniques for this field.

This project, which has an expected investment of US$1 billion, is expected to have a significant economic impact generating between 1000 and 1500 jobs during the peak construction stage.

The redevelopment includes the drilling of 30 new wells, the construction of a new processing plant including a LPG recovery unit, and installations for the expedition of LPG. The new treatment facilities will have a daily production capacity of 24 000 boe/d and 10 000 barrels per day of LPG. The design of the installations will meet the highest technical standards bpd in the industry with regards to efficiency, safety, and respect for the environment.

The agreement has been signed by Pedro Miró, CEO of Cepsa, Abdelmoumen Ould Kaddour, CEO of Sonatrach, and Arezki Hocini, President of Alnaft, at the headquarters of Alnaft in the Ministry of Energy in Algiers. This agreement reflects Cepsa’s commitment to Algeria and it represents an important step for the project and the strengthening of the historical association between Cepsa and Sonatrach.

The contract arises from the agreement signed between the two companies in November 2016, where the bases were set to extend the collaboration over the long term, and it will come into force once it is published in the Algeria’s Official Bulletin. The contract will be the first production field in Algeria that will be governed under the hydrocarbon law 05-07.

The RKF oilfield was discovered 25 years ago and was the first oilfield put into operation by Sonatrach and Cepsa in Algeria.

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