Algerian state-owned oil company Sonatrach Tuesday confirmed that Australia's BHP Petroleum Ltd. plans to sell a slice of its stake in three hydrocarbons projects in the North African country to compatriot Woodside Petroleum Ltd., according to a report from the Organization of Petroleum Exporting Countries' news agency, OPECNA.
Under the terms of the $225 million deal, BHP would sell 15% of its share in the Ohanet risk service contract, its 50% stake in the Hassi R'Mel West gas prospect agreement, and its 50% interest in the Boukhechba production sharing contract.
The transactions would be subject to approval by the Algerian government and Sonatrach�which holds a right of reserve on the three projects.
OPECNA reported that the "most important" transfer of the three would be BHP's sell-down of its stake in the Ohanet project, a scheme targeting the development and production liquefied petroleum gas, condensate, and dry gas from the southern Algerian field's natural gas reserves.
BHP signed the Ohanet contract, worth some $923 million, last July, taking a 60% stake in the project. Following the transaction with Woodside, BHP will hold a 45% interest in Ohanet, while project partners JOOG of Japan and the US oil company Petrofac Resources International Ltd. hold 30% and 10% shares respectively.
