DEA Inks Accord with Sonatrach
Hamburg-based DEA, owned by Russian controlled LetterOne, said December 6 it has signed a memo of understanding (MoU) with Algerian state producer Sonatrach defining the framework for DEA's potential participation in additional upstream projects in Algeria.
It was signed in Algiers December 5 by Sonatrach upstream vice president Salah Mekmouche (right below), and by DEA chief operating officer Dirk Warzecha (left below) who said it “paves the way for further cooperation of the two companies [and] reflects DEA’s long-term commitment to Algeria,” a core country for DEA.
DEA has a 19.5% interest in the $3bn Reggane Nord gas project in southwest Algeria.
"Reggane Nord comprises of six gas fields under development, which are planned to be brought on stream in the coming few months," said DEA in its statement. However a DEA spokesman told NGW later on December 6 that first "production from Reggane Nord is expected to commence before end of December, as scheduled."
Operator Repsol did not mention the Reggane Nord project in its 3Q results last month, and many expect the Spanish firm and partners Sonatrach, DEA and EDF-owned Edison will start production in 2018. The project is expected to plateau at some 2.9bn m³/yr. Repsol and Sonatrach signed a similar agreement in June 2017 to that now signed by DEA with Sonatrach.
DEA also announced it appointed a new general manager for Algeria on September 1, Sameh Sabry, who joined the company in 2008 and who most recently was DEA Egypt's deputy general manager.
