FIRST PETROLEUM

closed

The First Petroleum Project's primary objectives are to: (i) help the Government and SONATRACH in their efforts to attract investments in exploration and development by foreign oil companies; (ii) help improve the efficiency of the petroleum services subsector (particularly drilling operations); (iii) help optimize the production of its oil fields through enhanced oil recovery schemes; and (iv) address environmental problems related to drilling and production operations. A related objective is to help SONATRACH mobilize external funds through co-financing arrangements with Eximbank of Japan, and more generally, to facilitate SONATRACH's efforts at reentering the international capital markets. The project comprises four components: (i) assistance for the promotion of exploration acreage to foreign oil companies, including basin studies, the setting up of a modern exploration data base, promotional and contractual assistance, and the services of full-time foreign experts; (ii) technical assistance and training in drilling supervision; (iii) selected enhanced oil recovery subprojects and related studies; and (iv) training and other technical assistance "inter-alia" in the area of organization, financial systems, planning optimization, and environmental protection.