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Petroceltic And Sonatrach Agree To Develop 'Ain Tsila For 2017 Start-Up

Petroceltic�s 'Ain Tsila gas field on the Isarene permit in Algeria�s prolific Illizi Basin is set to move to development with the company, its Italian partner Enel and Algerian state firm Sonatrach having finalized details of a development plan just before the 10 August deadline. Details are largely in line with those trailed by MEES: Sonatrach will market gas production at prices to be calculated using a Brent-linked formula (MEES, 6 August).

The official declaration of commerciality puts �sales gas� reserves at 2.1 trillion cu ft, with 67mn barrels of condensate and 108mn barrels of LPG. Upon approval from the Algerian authorities a 30-year exploration permit will be granted. First gas is slated for the third quarter of 2017, after which 14 years of 355mn cfd plateau wet gas production is envisaged. Condensate and LPG production will be around 15,000 b/d each. Development work is expected to commence in 2014 following the completion of front end engineering next year.

The Irish independent plans to divest a further tranche of its 56.625% working interest in order to help fund development. Sonatrach has 25% and Enel 18.375%.

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