Algeria: Sonatrach pre-empts Petroceltic farm-out, company sees upside


State energy giant Sonatrach has decided to exercise its right to pre-empt operator Petroceltic International’s proposed sale of an 18.375% interest in the Isarene production-sharing contract, which contains the Aïn Tsila gas field. In a 7 October statement, Petroceltic said “the commercial terms and proceeds of pre-emption are similar to those agreed between the company and a potential third party purchaser”. Although Sonatrach has been ordered to take a bigger stake in the sector in recent years, it remains rare for it to seek pre-emption rights, suggesting to analysts that the deal was priced very competitively and the asset contains considerable upside.