Tuesday, Feb 21, 2012
ALGIERS (AFP)--Algeria's state energy giant Sonatrach, Total SA and Cepsa will invest $1.5 billion to extract gas in southwestern Algeria, the country's hydrocarbons agency Alnaft said Tuesday.
Production is slated to begin in 2014 with a daily rate of 5.0 million cubic meters of gas and condensates in the first eight years.
The consortium will also build infrastructure at the eight sites located between the cities of Timimoum and Adrar--1,230 kilometers and 1,540 kilometres southwest of Algiers--to collect and treat the gas.
Sonatrach, which accounts for 98% of Algeria's foreign-exchange earnings, holds a 51% majority stake in the consortium.
Total holds 37.75% and Cepsa has 11.25% .
Algeria is the second-biggest gas supplier to Europe after Russia.
(END) Dow Jones Newswires
21-02-12 1803GMT
