Elf Hydrocarbures Algérie, a subsidiary of Elf Aquitaine (NYSE:ELF), has signed an agreement with Arco El Djazair Co., a subsidiary of Arco, for the acquisition of 40% interest in the production sharing contract for the Rhourde El Baguel field in Algeria. This contract, initially signed with Sonatrach and Arco, is for the complementary development of the Rhourde El Baguel field which is located 100 kilometers east of Hassi Messaoud.

This acquisition is subject to the approval of the Entreprise Nationale Sonatrach and the Algerian authorities.

Rhourde El Baguel is one of the most important oil accumulations in Algeria and has been producing since 1962.

The complementary development project, which calls for massive gas injection and additional drilling of producing wells, aims to double the field's reserves. Production should rise to more than 120,000 barrels a day within the next few years.

The overall investment over a 25-year period or the length of the contract, is around $1.5 billion.

As from this year, Rhourde El Baguel will contribute to the growth of Group’s oil production.