Dublin-based exploration firm Petroceltic and its partners has awarded the drilling contract for the Ain Tsila gas field in Algeria to the Chinese company Sinopec.

The 1500 horse power rig, which is now built and ready to ship, will drill up to 24 new development wells. The first 12 drilling locations, all in the northern region of the field, have already been selected and approved.

Groupement Isarene, the joint operating group set up by Petroceltic, Enel and the Algerian state energy group Sonatrach, has also started to identify companies to tender for the engineering, procurement and construction (EPC) contract for the project. This is expected to take place over the coming months.

The project remains on track to deliver first sales gas in the first quarter of 2018.