Exploratory drilling on an Algerian permit operated by E.ON Ruhrgas has discovered reserves of oil and natural gas
The discovery was made at an exploratory well in the Rhourde Yacoub field, Reuters reported. E.ON acquired a stake in the permit in a bid round concluded in 2009. It is operator and holds 49 per cent, while Sonatrach holds the remaining stake.
"This discovery confirms the potential for hydrocarbons in this permit, which the parties to the contract plan to develop jointly once work has been completed to establish the extent (of the reserves)," Sonatrach said in a statement, according to the news wire.
Algeria, an OPEC member and a major supplier of gas to Europe, had so far announced no major oil and gas finds this year.
Speeding production
Energy officials say they plan to speed up exploration efforts to replace the mature fields that account for most of the country's production.
However, this plan has been hampered by the reluctance of international oil companies to buy into Algerian oil permits.
Analysts say many foreign majors are put off by financial terms that are not sufficiently attractive.
