Gazprom Signs for $120Mn Stake in Algeria Oil

(RIA Novosti) - Russian energy giant Gazprom has signed a contract on exploring and developing a hydrocarbon deposit in eastern Algeria, the Algerian newspaper El Watan reported on Monday.

On December 13, Gazprom was announced the winner of a hydrocarbon exploration and development tender for the onshore El Assel area, located in Algeria's Berkine Basin.

Gazprom, which received a 49% stake in the project, intends to invest about $120 million in geological exploration and drill four exploratory wells. The recoverable oil reserves of the El Assel deposit have been estimated at 30 million metric tons (220 million barrels).

Algeria's proven natural gas reserves stand at 4.58 trillion cubic meters, the second largest in Africa after Nigeria (5.15 trillion cubic meters). The country's natural gas reserves are largely located in central and eastern Algeria.

Algeria's proven oil reserves amount to 1.58 billion metric tons (11.6 billion barrels), the third largest in Africa after Libya and Nigeria.

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