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Update: Saturday, 15 May 2010    

Algeria : Sonatrach signs a contract with Endesa

To double its gas exports to Spain
Tuesday May 23 2006.

The vice president in charge of the source branch at Sonatrach, Belkhadem Boumedien, unveiled yesterday that Berkin oil well that Sonatrach guarantees its production on its own, will enter the production in the coming weeks.

The well will produce what is worth 25000 barrels a day, that thing that will Algeria to increase its production to 1,5 millions barrels a day. The same responsible, on the margin of the buying and selling gas to Spanish company Endesa signature ceremony held yesterday, in the headquarter of Sonatrach, declared that Sonatrach is planning a huge programme of drilling from the year 2008.

On the other part, the amount agreed on that Sonatrach would ship to Spain after the building of the mix company between Sonatrach and Endesa is about 2 billions square meters. This amount will be directed to the Spanish market after finishing the new gas tube Medgas. The value of the agreement was estimated, according the vice president of Sonatrach charged with marketing, Mr Hached, at 250 millions dollars annually, which will cover 5 billions dollars for the 20 years agreed on.

Concerning the Medgas tube that will be ready by 2009, the president general director of Sonatrach Mohammed Mezian, points out that he started the realisation of the part linking Hassi Messaoud and Souger, while it is to be awaited the adjustment board to give authorisation to start in the maritime tube.

On the other part, Mohammed Mezian, declared that Endesa company is number one in electricity production in Spain, and it is the partner of Sonatrach in the project of retransformation of Gas, with 10% for Sonatrach and 21% for Endesa.

S. Yousfi — El-Khabar

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