Petroceltic Announce Award of Rig Contract for the Ain Tsila Project

Petroceltic Announce Award of Rig Contract for the Ain Tsila Project

Petroceltic International plc (AIM: PCI) (“Petroceltic” or the “Company”), the oil and gas exploration, development and production company focused on the Middle East, North Africa and the Mediterranean region, announced the award of a contract for the provision of a drilling rig between Groupement Isarene (“Groupement”) and SINOPEC International Petroleum Service Corporation (“SINOPEC”) for the Ain Tsila gas and condensate field.

Groupement Isarene, the joint operating organisation responsible for executing the Ain Tsila field development plan established by Sonatrach, Petroceltic and Enel, successfully completed the tendering process resulting in the award and signature of the contract to SINOPEC. The 1500 horse power rig, which is now built and ready to ship, will drill up to 24 new development wells. The first 12 drilling locations, all in the northern region of the field, have already been selected and approved.

The award of the rig contract represents the achievement of a further milestone for the Ain Tsila project and will enable drilling to commence on schedule in 2015.

The Front End Engineering and Design of the project which was awarded in September 2014 to Chicago Bridge and Iron is also progressing well. The Groupement has launched the process to identify suitable companies to perform the Engineering, Procurement and Construction (“EPC”) contract via publication of an invitation to pre-qualify in the Algerian Bulletin of Public Tenders in the Energy and Mine Sector. The Groupement is in receipt of a number of submissions, and it is anticipated that a shortlist of potential bidders who will be formally invited to tender for the EPC contract will be established shortly.

Brian O’Cathain, Chief Executive of Petroceltic commented:
“We are pleased with the award of the rig contract to SINOPEC, a company with extensive experience in Algeria.
This award demonstrates the significant progress that Petroceltic and its partners are making towards the development of the world class Ain Tsila gas condensate field. The next important project milestone will be the launch of the invitation to tender for the EPC contract which we expect to occur in the second quarter of this year. The project remains on track to deliver first sales gas in Q4 2018.”

Source: Petroceltic International plc

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