E.ON, Sonatrach strike gas in Algeria
Dubai, November 20, 2010
E.ON Ruhrgas, one of Europe’s largest suppliers of natural gas, and Sonatrach, the Algerian National Oil & Gas Company, have announced their first gas discovery at Algeria’s Rhourde Yacoub block.
In co-operation with Sonatrach, E.ON Ruhrgas E&P, the operator of the Rhourde Yacoub exploration block, has successfully completed the drilling and testing of the Zemlet Cherguia-1extension (ZCH-1ext) exploration well.
The gas field is located in the eastern Algerian Sahara, around 250 km south-east of the town of Hassi Messaoud, said a senior official.
“This result is another important step for our upstream business,” said John Roper, E.ON Ruhrgas Head of Middle East. 'The success of Rhourde Yacoub highlights E.ON’s commitment to investing in the Algerian exploration and production industry,” he added.
E.ON Rurhgas, the Essen-based gas arm of Germany’s largest utility E.ON, has established a presence across the Middle East in recent years which includes Abu Dhabi and Doha, two of the region’s largest suppliers of liquefied natural gas.
It is one of the largest investor-owned power and gas companies which has over 88,000 employees and generated €82 billion in sales in 2009. The integrated business model extends from power generation and gas production to distribution and sales.
The Rhourde Yacoub block is operated by E.ON Ruhrgas E&P with an equity share of 49 per cent. Sonatrach as the other joint venture partner holds the majority of 51 per cent. The well is the second exploration well drilled by E.ON Ruhrgas E&P in Rhourde Yacoub.
In 2003, E.ON Ruhrgas started its exploration and production activities with a few specialists.
Today it is a highly promising business with 200 employees and additional experts providing a strong segment as gas producer for E.ON Ruhrgas.
In 2009, E.ON Ruhrgas E&P produced 4.4 billion cubic metres of natural gas (at equity gas included). Production will increase significantly over the next years as more fields are brought on stream.-TradeArabia News Service