Tullow takes stake in Algerian oil field

Exploration firm Tullow Oil has acquired a 30 per cent stake in an Algerian oil field from AGIP Algeria Exploration for an undisclosed price.

The oil project Block 222b, Tullow's first in Algeria, is in the eastern part of the country. AGIP now holds 50 per cent of the block, Tullow 30 per cent and Teikoku Oil (Algeria) has 20 per cent.

The original petroleum contract was executed between AGIP and Sonatrach in May 1999. The agreement remains subject to an official approval by Sonatrach and the Algerian authorities.

The first exploration period runs for three years from May 2000 until May 2003, during which a minimum of one exploration well will be drilled. The minimum investment for the three-year period is $8 million (#8.9 million), of which Tullow's share will be $2.4 million.

"Algeria is a significant new addition to Tullow's international exploration portfolio. Block 222b is in a world class petroliferous basin and adjacent to a number of very significant producing fields," said Mr Aidan Heavey, Tullow chief executive.

Last month, Tullow completed the purchase of the first of two packages of North Sea gas assets and related infrastructure which it agreed to acquire from BP for a maximum of £201 million following BP's takeover of Arco last April. The so-called Murdoch-Boulton Package in the southern North Sea comprises interests in three licences held by BP in quadrants containing two producing fields, two discoveries, and explorations prospects and leads.