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Sonatrach renews Enel deal
algERIa
SONATRACH has renewed its 10-year sale and purchase agreement (SPA) with Italy’s Enel, the Algerian state-owned company said on June 26. e deal was set to expire at the end of 2019.
e deal was signed at Sonatrach’s headquar- ters by the company’s vice president for mar- keting, Ahmed Mazighi, and the head of Enel Global Trading, Claudio Machetti.
e agreement extends the two companies’ partnership, which dates back to 1991. Sonatrach referenced a deal with Eni, signed on May 16, as consolidating its position in the Italian market as one of the leading suppliers. e companies did not provide the volumes covered by the deal.
Enel said the deal was for eight years, starting at the beginning of 2020, with the possibility to extend for another two years through mutual agreement. e contract enables “Enel to make its gas supply portfolio more diversi ed, compet- itive and exible, providing security of supply to the Italian system”, it said.
In 2007, Enel said it would increase imports from Algeria by 1bn cm under a deal it struck with Sonatrach, based on supplies via the Transmed link. Algeria began providing gas to Enel in 1997, at 4bn cm, and this ramped up to 6bn cm in 2002.
Enel is also exploring in Algeria. In 2014, the company won two blocks in Algeria, Msari
Akabli and Tinrhert Nord. It is also developing the Isarene permit. A $1bn contract was awarded to Petrofac in March for the development of the Ain Tsila eld, on Isarene, in March. First pro- duction is targeted for 2020, with output of 3.7bn cm per year.
Sonatrach extended its supply deal with Por- tugal’s Galp earlier in June. e Algerian com- pany said it would provide 2.5bn cm per year of gas to the Portuguese market for another 10 years.
Algerian gas exports declined in 2018 to 51.5bn cm, from 54bn cm in 2017, Sonatrach said in May. e company said 75% of these vol- umes went via pipelines. Italy is its top market, receiving 35% of exports, while Spain takes in 31%.
Invictus ups Zimbabwe numbers
ZIMbabWE
AUSTRALIA-BASED Invictus Energy has reported a new prospective resource estimate for its licence in Zimbabwe, which holds what the company has reported is potentially the largest, undrilled seismically de ned structure onshore in Africa. e company has taken on Envoi, a sales advisor, to run a farm-out process on its licence, SG 4571.
e ASX-listed company said the report had been prepared by Getech Group. e total pro- spective resource for the Mzarabani and Msasa prospectswasestimatedat262bncmand294mn barrels of oil or condensate, on a gross unrisked basis. In November 2018, the prospective resource had been estimated at 110bn cm and 181mn barrels of liquids, based on the Upper Angwa horizon alone.
According to Getech’s calculations, Mzara- bani is estimated to contain 232bn cm and 250mn barrels of liquids, across ve horizons. e Msasa prospect, meanwhile, may hold 30bn cm and 44mn barrels, across three horizons.
Invictus has an 80% stake in the SG 4571 licence. On a net basis to Invictus, the licence may contain 37.8bn cm, at the low end of
projections, to a high of 452bn cm.
e company’s managing director, Scott Mac-
millan, said the Mzarabani prospect had “grown signi cantly in its scale and represents one of the largest conventional exploration targets glob- ally”. He picked out the Upper Angwa horizon as particularly notable, with a gross unrisked mean resource of 125bn cm and 187mn barrels of liquids. e best estimate for this horizon in 2018 was 95bn cm. Getech’s work has “not only materially enhanced the value of our acreage, but alsode-riskedit,”hesaid.
The report was prepared on the basis of seismic acquired by Mobil in the 1990s. The US company had hoped to nd oil but, when it became apparent the Mzarabani prospect was more likely to be gas, it abandoned its e orts. Zimbabwe’s e orts to industrialise require gas, though, and Invictus believes there is a su - ciently large market to make the development of gas workable.
In early May, Invictus signed a preliminary agreement with Sable Chemical Industries for the supply of up to 1.98mn cm per day of gas for 20 years.
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w w w . N E W S B A S E . c o m Week 26 02•July•2019
