Petroceltic agrees Algerian asset sale

Dublin-based exploration firm Petroceltic International has formally agreed the sale of a further tranche in one of its headline assets, the Ain Tsila gas field in Algeria, for a potential $180m (€133m).

Sonatrach — the Algerian State oil company and, up to now, a junior partner in the field — has agreed to purchase an additional 18.4% stake in the asset; thus boosting its overall share to just under 43.4%.

The company will pay Petroceltic — which will ultimately keep a 38.25% holding — an initial $20m, before covering $140m of development costs and making two contingent payments of $10m each, based on certain early production milestones being met.