Petroceltic International, the independent oil and gas exploration and production company focused on the Middle East, North Africa, Mediterranean and Black Sea regions, has completed the sale of its 18.375 per cent interest in the Isarene PSC to Sonatrach, the National Oil and Gas Company of Algeria.

The deal, which was originally signed by Sonatrach, Petroceltic and Enel at a ceremony in Algiers on February 12th 2014, was subsequently ratified by the Algerian Council of Ministers on June 18th, and publically disclosed on July 7th.

Brian O’Cathain, chief executive of Petroceltic, said that the formal ratification of the agreement “is a critical step in the overall funding plan for this development project”.

“As development operations ramp-up, we look forward to continuing to work with Sonatrach and Enel to deliver the Ain Tsila Project and to maximise the value of this important national resource for Algeria,” he said.

The terms of the agreement with Sonatrach provide for a consideration of up to a maximum amount of $180 million, comprising a $20 million payment on this completion of the transaction; a further $140 million payment of Petroceltic’s share of Ain Tsila project development cost from the effective date of July 4th 2013; and contingent payments of up to $20 million based on the achievement of certain project related milestones.

Petroceltic now has a 38.25 per cent interest in the field and remains operator of the license.