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Zhongman Petroleum of China Awarded Natural Gas Block in Algeria

China’s Zhongman Petroleum and Natural Gas Group (ZPEC) said it won a tender to explore and develop a natural gas block in Algeria under a production sharing contract, marking the company's first hydrocarbon exploration in Africa.

The Shanghai-listed independent oil and gas explorer was awarded the contract by Algeria's National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) to explore the Zerafa II block in the central part of the country, said ZPEC.

ZPEC said it outbid global major TotalEnergies and a consortium of Italy's ENI and Norway's Equinor for the Zerafa II block.

The block, covering 38,697.73 square kilometers, sits in the southern part of Algeria's main gas-bearing Gourara-Timimoun basin.

ZPEC, one of China's small group of independent oil and gas companies, operates in China's Xinjiang region and Kazakhstan. Last year the company won rights to exploration blocks in Iraq.

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