VOL. XLV
No 27
8-July-2002
ALGERIA
Algeria Awards Seven Of 10 Blocks Tendered In Third Licensing Round
Algeria has awarded seven of the 10 oil and gas exploration blocks
tendered in the Third Licensing Round (MEES,
18 February – see Map overleaf). Three of the blocks, including two in the Berkine Basin, were unbid and will be retendered in a subsequent licensing round, Sonatrach said in a statement. The total work commitments
represented by the award amount to $107mn.
Anadarko,
which along with Denmark’s Maersk was awarded Block
403c/e, said it expected to enter into a Production-Sharing Agreement (PSA)
with Sonatrach within 15 days. Under terms of the
PSA, Anadarko and Maersk Oil will shoot a minimum of
200km of 2D seismic and drill one exploration well during the first three-year
period. Anadarko will hold a 67% interest in the venture, while Maersk Oil will take a 33% stake. “Block 403c/e is close to
our existing production facilities at Hassi Berkine South, where Anadarko and its partners have built
up substantial technical knowledge and seismic data. With this infrastructure
already in place, future discoveries could be developed quickly and
economically,” said Tony Meyer, Managing Director of Anadarko Algeria Company,
in a statement released by the firm. “This year will see Anadarko and its
partners resume exploration drilling in Blocks 404 and 208 and undertake
seismic activity on Block 406b, which Anadarko was awarded in Algeria's second license round in October,” Mr
Meyer added.
TotalFinaElf
(TFE) said its work commitment for Blocks 325a-329 will include 2D and 3D
seismic as well as three wells. TFE will operate the permit with 85% of equity,
while Cepsa will hold the remaining 15%. TFE already
operates the Tin Fouye Tabankort
wet gas field in the south east of the country and was awarded Blocks 432,
444s-403n late in 2001 (MEES, 8
October 2001). Cyprus-registered and Tunisian-owned Medex
Petroleum meanwhile has strengthened its position in the Illizi Basin area, where it already operates Block 221.
Algeria Third
Licensing Round Awards
|
Block
|
Area (sq km)
|
Area
|
Company
|
|
Block 108-128b
|
4,610
|
Southeast of Constantine
|
Unbid
|
|
Block 403c/e
|
1,510
|
Berkine
Basin
|
Anadarko/Maersk
|
|
407b
|
1,795
|
Berkine
Basin
|
Unbid
|
|
424a-443a-414ext-415ext
|
5,670
|
Berkine
Basin
|
Unbid
|
|
226-229b and 242
|
5,327
|
Illizi
Basin
|
Medex
|
|
433a-416b
|
6,472
|
Oued
Mya region
|
PetroVietnam
Investment &
Development
|
|
325a-329
|
13,249
|
Timimoun,
northeast of In Salah
|
TotalFinaElf/Cepsa
|
|
351c-352c
|
12,217
|
Reggane
region
|
RWE-DEA/Edison/Repsol
|
|
352a-353
|
15,392
|
Sbaa
Basin
|
Gaz
de France
|
Source:
Sonatrach
Copyright © 2002 Middle East
Economic Survey