Algeria’s state-owned company Sonatrach has made a new oil discovery at the Hassi Illatou well in the Sbaa region of Adrar province, news agency APS reported on Thursday.
The initial estimated volumes of this discovery stand at 151 million barrels of oil.
This is a “very promising” result that will lead to further hydrocarbon exploration activities in the province of Adrar, APS reported.
The discovery was made 28 years after the last oil discovery at Foukroun in the Sbaa area, the report said.
The North African country, a member of Opec, relies heavily on oil and gas for its state revenue. Algeria is Africa’s biggest gas exporter and supplies about 11 per cent of the natural gas consumed in Europe.
Algerian oil production in September will rise to 1.57 million barrels per day after a decision by the Opec+ bloc to raise its output by 100,000 bpd, Reuters quoted Algerian Energy Minister Mohamed Arkab as saying earlier this month.
Last month, Sonatrach finalised an agreeement with French oil company TotalEnergies, Occidental and Italy’s Eni to extend a production-sharing contract for a period of 25 years for onshore blocks in the eastern part of the North African country.
The four companies will invest $4 billion in the perimeter of Berkine to produce one billion of oil equivalent barrels, Reuters reported, citing Sonatrach chief executive Tewfik Hakkar.
Sonatrach, which reported a turnover of $34.5bn last year, recorded an increase in production of 5 per cent, as well as a jump in its exports of about 18 per cent last year.
Updated: August 25, 2022, 5:55 PM