afrol News, 23 December - The European Commission has concluded that the agreement by Statoil ASA to acquire 49 percent of BP's interest in Algeria's In Salah dry gas project accords with European Union regulations. This brings the deal to its commercial closure, the company says, adding that it now will play a greater role in Algeria's oil sector.

The Norwegian government-owned oil company Statoil and British BP signed had two purchase agreements in June - one covering In Salah and the other giving Statoil 50 percent of BP's holding in Algeria's In Amenas gas condensate field.

Both contracts were approved in October by Sonatrach, the Algerian state oil and gas company, but the In Salah deal also had to be submitted to the European Commission for consideration. That assessment has concluded that the contract accords with EU regulations.

Statoil in a press release today however says that this agreement also requires the approval of the Algerian Ministry of Energy and Mines as the national oil and gas industry regulator.

- Statoil and BP are to collaborate with Sonatrach over both In Salah and In Amenas, the Norwegian oil company says.

Totalling US$ 740 million for the interests in both projects, the purchase price was paid in October for In Amenas and December for In Salah. Statoil will hold 31.85 percent of the revenue sharing contract for In Salah, and 50 percent of the production sharing agreement covering In Amenas.

- The agreement marks the group's entry to the Algerian market, the Statoil statement says, "and will provide an important platform for future growth in this country."

Statoil's gross (equity) share of reserves in the two fields is estimated at 944 million barrels of oil equivalent. This corresponds to 300-400 million barrels of oil equivalent in net (entitlement) reserves.

By staff writer

© afrol News

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