In Q4 2019, the Groupement Sonatrach/AGIP JV (GSA) was awarded a production concession across the Sif Fatima Profond West (SFPW) Field, located in the central Berkine Basin. The award is effective from 30 May 2019 and is understood to be on a 25-year term.The field was discovered by Sonatrach in January 2016, after the drilling of the SFPW 1 ST1 exploration well to 5,150m TD. It tested oil & gas from multiple intervals in the Silurian and Devonian, in a structure lying below the company's Sif Fatima Field (Triassic reservoir). Two successful appraisals SFPW 2 (5,000m TD) and SFPW 3 (4,950m TD) were drilled in April 2017 and August 2018 respectively. The production concession forms part of the Sif Fatima II licence, originally awarded to Sonatrach with 100% equity in October 2015. On 27 January 2019, Eni completed the acquisition of 49% equity (+Op) in Sif Fatima II, alongside the adjacent Ourhoud II and Zemlet El Arbi exploration licences. Sonatrach previously held 100% equity in all three blocks. The deal is understood to have been in the region of US$ 400 million, with plans to drill up to five wells and acquire 2,600 sq km of 3D seismic. In addition, up to US$ 1 billion is slated to be invested in a parallel development programme, focused on the Bir Rebaa Nord (BRN) Field. The deal marks a significant change in relationship between Sonatrach and the IOCs, insofar as the deal is the first since the ill-fated 2014 bid round that has seen Sonatrach farm-out equity to an international partner. The company has changed tack since 2014, preferring to negotiate one-on-one deals with the IOCs, as well as seek partners in its wholly-operated acreage. The production licence is the first to be granted following Eni's farm-in. It is operated by the GSA, with equity split between Eni (49%) and Sonatrach (51%). <P />
GSA was awarded a production concession across the Sif Fatima Profond West (SFPW) Field, located in the central Berkine Basin