Petroceltic (LON:PCI) has passed a major milestone for its plans in Algeria after its Ain Tsila gas-condensate field got the green light.
The company hailed the approval, which followed the field’s declaration of commerciality in August and an agreement with Sonatrach to market any gas produced. The project will now move forward into a 30-year development phase.
Petroceltic owns a 56.625% interest in Ain Tsila alongside Sonatrach (25%) and Enel (18.375%). Petroceltic reiterated today it wants to farm down a further 18.375% of its interest next year.
Brian O'Cathain, Petroceltic’s chief executive, said the goal is to achieve first gas from Ain Tsila in the third quarter of 2017.
“The regulatory approval of the plan of development should also allow Petroceltic to book the reserves associated with this asset and to finalise the outstanding financial arrangements associated with the farm-in by ENEL which was completed earlier this year," he added.
Development will involve the production of gross reserves of 2.1tn cubic Feet of sales gas, 67 million barrels of condensate and 108mln barrels of liquid petroleum gas.