Algiers (VNA) – A joint oil exploration and extraction project in Algeria, involving Vietnam’s Petrovietnam Exploration Production Corporation (PVEP), Algeria’s state-owned Sonatrach, and Thailand’s PTTEP, has entered its second phase, building on a track record of success.

The project, managed by Groupment Bir Seba (GBRS) - a company formed by the three partners under a production-sharing contract, features an ownership split of 40% for PVEP, 35% for PTTEP, and 25% for Sonatrach.

From March 9-12, Vietnamese Ambassador to Algeria Tran Quoc Khanh led a delegation to the site, discussing with GBRS’s General Director, Vietnamese staff, and local officials to size up progress and plot next steps.

The project stands as the most successful foreign investment by Vietnam Oil and Gas Group (Petrovietnam) to date. In 2024, it outran production targets, pumping 15,331 barrels daily — 8% above Petrovietnam’s goal — for a yearly haul of 5.61 million barrels. Since 2015, cumulative production hit nearly 57 million barrels by the end of 2024. This year, daily output has climbed to between 17,000-17,500 barrels.

Much of the success stems from PVEP engineers, who completed a major overhaul of the processing plant last year. The maintenance, which included pressure testing of equipment after 10 years of operation, wrapped up 10 days ahead of schedule, boosting output by an extra 165,000 barrels and adding 11.55 million USD in revenue.

Looking forward, PVEP aims to deepen ties with its partners to speed up new contract packages and tap new wells in the second phase, targeting higher output. The company also plans to pursue new deals in promising Algerian blocks to expand its footprint in the North African nation.

Ambassador Khanh called on Algerian authorities and partners to keep supporting Vietnamese engineers, highlighting their expertise as key to future projects. He addressed challenges in project execution and expansion, stressing the need to bolster oil and gas ties between Vietnam and Algeria.

He also urged PVEP to seek further agreements with Algerian counterparts, pledging the embassy’s full political backing to ensure Vietnamese professionals thrive there.

Algeria now ranks among Africa’s top three oil producers. With reserves estimated at 5.7 billion tonnes (about 38 billion barrels) and daily output nearing 180,000 tonnes (1.2 million barrels), the country holds the 12th spot globally in oil production and 9th in exports./.