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The CEO of the state-owned hydrocarbons giant Sonatrach has said that the country has taken on board the lessons it learnt from the lack on interest in its previous oil and gas licensing round and made the terms more favourable this time.
“We have taken into consideration the remarks and suggestions made by foreign companies for this second round,” Mohamed Meziane is reported by Reuters as saying.
Algeria is offering new blocks as well as trying to re-tender some of the blocks that did not find takers in late 2008 amid IOC concerns over draconian Algerian investment terms.
Samuel Ciszuk, energy analyst for IHS Global Insight said he believes that Algeria is trying to speed up development in the country in order to bring sufficient feedstock onstream for its ambitious downstream and export ventures.
“Results from Algeria’s seventh licensing round last year were not only disappointing to the government, energy ministry, Sonatrach and the country’s licensing body, but also a wake-up call, signalling that the limit above which IOCs would no longer find it attractive to invest had largely
been exceeded,” Ciszuk said.
“Algeria needs foreign investment and expertise in order to meet its ambitious development targets,” he added.
Algeria blamed the lack of interest in the first round, where only four out of a possible 16 blocks were awarded, on the current global recession.
Algeria’s eighth licensing round
Basin: Gourara
Permit: Ahnet
Blocks: 337b, 338b, 339a2, 339b, 340b, 341b, 341a2
Area: 17,358 sq. km
Basin: Illizi
Permit: Oudome
Blocks: 223b, 245n
Area: 2,902 sq. km
Basin: Illizi
Permit: Gara Tesselit /Ouest Ohanet
Blocks: 245 Sud, 239b, 234c
Area: 6,665 sq. km
Basin: Illizi
Permit: Sud-Est Illizi
Blocks: 232, 241
Area: 5,641 sq. km
Basin: Amguid Messaoud
Permit: Touggourt
Blocks: 433a, 416b
Area: 6,034 sq. km
Basin: Berkine
Permit: Bir Romane
Blocks: 414s, 443b, 444n
Area: 4,641 sq. km
Basin: Berkine
Permit: Hassi Bir Rekaiz
Blocks: 443a-424a-415ext-414ext
Area: 5,670 sq. km
Basin: Berkine
Permit: Timissit Ouest
Blocks: 208Est, 211
Area: 6,240 sq. km
Basin: Berkine
Permit: El Aricha El Tahtania
Blocks: 407
Area: 4,392 sq. km
Basin: Reggane
Permit: Reggane Djebel Hirane
Blocks: 328b, 362b, 352d
Area: 9,386 sq. km
