Could this spell the end of Sunny Hill? The London-based firm, formerly known as Petroceltic, said on 15 April that Algerian state-oil firm Sonatrach had “terminated [its] contractual interest” in the 3.5bcm/y Ain Tsila project located in the Illizi Basin. The decision leaves Sunny Hill in something of an existential crisis given that Ain Tsila represents the cash-strapped firm’s last remaining oil and gas asset after having agreed to quit Egypt last year (MEES, 16 October 2020).
Sunny Hill has a 38.25% operator’s stake in Ain Tsila which is currently being built by UK services firm Petrofac under a $1bn EPC contract (MEES, 15 March 2019). Official start-up had been scheduled for September 2022, but Sonatrach CEO Toufik Hakkar indicated on 15 April that further potential delays were the key impetus for the move. “We can’t tolerate delays in projects. It is a strategic project for Algeria and Sonatrach,” he told Bloomberg. The state-giant now plans start-up for November 2022. (CONTINUED - 924 WORDS)