Algeria’s Ministry of Energy and Mines on 9 April announced the award of nine concessions in its sixth licensing round (MEES, 11 October 2004), with BP winning three licenses and Shell, BHP Billiton and Gulf Keystone winning two each. Ten concessions were offered, but a license for the Bir Romane concession was not awarded.
BP was awarded the Hassi Matmat concession containing Block 410-411, Bourarhat South containing Blocks 230-231, and South East Illizi containing Blocks 232-241. BP said an exploration program consisting of seismic surveys and wells would be conducted on each block.
Shell was awarded the Zerafa concession containing Blocks 345-346-322b, and Reggane Hirane containing Blocks 328b-352d-362b. Shell said that in the Zerafa concession its first exploration phase would consist of two exploration wells, 960km of 2D seismic and 540 sq km of 3D seismic. In Reggane Hirane, Shell’s first exploration phase will consist of two exploration wells, 750km of 2D seismic and 900 sq km of 3D seismic.
Gulf Keystone, a US-UAE joint venture, was awarded the Bottena concession containing Block 129 and Hassi Ba Hamou containing Blocks 317b1-322b3-347b-348-349b. Australia’s BHP Billiton was awarded the Hassi Bir Rekaiz concession containing 443a-424a-415ext-414ext, and Oudoume containing blocks 222b-222c-223b.
Bidding in the round earned Algeria $133.5mn. Since it began to license blocks to foreign firms the country has leased 27 concessions and earned some $394mn. Algeria plans to launch a seventh licensing round in May once the new hydrocarbon law comes into force (MEES, 21 March). The energy ministry has targeted crude production at 1.5mn b/d by the end of 2005 and 2mn b/d by 2010.
Awards In Algeria’s Sixth Upstream Licensing Round
Area | ||||
Basin | Company | Perimeter | Blocks | (Sq km) |
South East Constantine | Gulf Keystone | 129 | 4,368 | |
Berkine | Not Awarded | 414 south-443b-444 north | 4,611 | |
BHP Billiton | 443a-424a-415ext-414ext | 5,670 | ||
Oued Mya | BP | 410-411 | 14,937 | |
Illizi | BHP Billiton | 222b-222c-223b | 5,538 | |
BP | 230-231 | 5,304 | ||
BP | 232-241 | 5,640 | ||
Bechar – Oued Namous | Gulf Keystone | 317b1-322b3-347b-348-349b | 18,380 | |
Gourara | Shell | 345-346-322b | 22,115 | |
Reggane | Shell | 328b-352d-362b | 9,385 |
Source: Ministry of Energy and Mines.
