By Alex MacDonald

LONDON--Petroceltic International PLC (PCI.LN) said Monday that Groupement Isarene, the joint venture responsible for operating Algeria's Ain Tsila gas and condensate field, has awarded a drilling rig contract to China's Sinopec International Petroleum Service Corp.

The rig will drill up to 24 new development wells, the first 12 of which are located in the northern region of the field.

The next important project milestone will be the launch of a tender for the engineering, procurement and construction contract in the second quarter of this year.

"The project remains on track to deliver first sales gas in [the fourth quarter] 2018," said Petroceltic Chief Executive Brian O'Cathain.

The Groupement Isarene joint venture is composed of Sonatrach, Petroceltic and Italy's Enel SpA (ENEL.MI).

-Write to Alex MacDonald at alex.macdonald@wsj.com

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