Algerian-Chinese-Thai consortium completes drilling work of key oil well

Algerian state energy group Sonatrach, in partnership with its Chinese and Thai counterparts, has completed the drilling work of a key oil well in the south of the country, the company said in a statement on Tuesday.

The output capacity of the oil well is estimated at 2,406 barrels per day, the statement said.

Sonatrach with its two partners, China's CNOOC and Thailand's PTTEP, started the drilling work in 2011 in the Hassi Bir Rekaiz oilfield in the Berkine basin, about 800 km southeast of the capital Algiers.

Algeria's oil production has declined in recent years, caused by a lack of foreign investment following the slump in oil prices and the depletion of reserves.

Still, the Algerian government has decided to earmark an equivalent of 90 billion U.S. dollars for the oil production and exploration from 2015 to 2019.

Sonatrach expects to increase hydrocarbon outputs to 225 million tonnes of oil equivalent by 2018, compared to 195 million tonnes in 2013.

Algeria's share in the Organization of Petroleum Exporting Countries (OPEC) is around 1.2 million barrels per day.

Source : XINHUA