Full issue - Ministère de l'énergie et des mines

PERFORMANCES
Energy
Four international companies
win 9 oil exploration blocks
In Algiers, four international oil companies won 9 oil exploration blocks
in Algeria, for a total amount of 133 billion dollars. These companies
were selected at the end of a public session in which the tenders were
opened which took place in Algeria, further to a 6th international
appeal for tenders launched by Algeria.
Energie & Mines
6
These companies are: BP, which
won 3 exploration blocks, and
BHP, Gulf Custom and Shell
which won 2 blocks each.
The blocks in question are located in
Bottena, in the Constantine South-East,
Bir Romane and Hassi Bir Rekaïz, in the
Berkine basin, Hassi Matmat in the
Oued-Mya basin, Oudoum and
Bourarhat-Sud (Illizi). Other blocks are
located in Hassi Ba Hamou (Béchar-
Oued Namous), Zerafa (Gourara) and
Reggane-Djebel Hirane (Reggane).
Since the first international appeal for
tenders, launched in November 2000,
exactly 27 contracts have been signed
for a total investment of 393.85 million
dollars. The allocation of 9 oil exploration
blocks in Algeria out of the 10 put
up for competition within the framework
of the 6th appeal for tenders is an
“excellent result” stated the Minister of
Energy and Mines, Mr Chakib Khelil, in
Algiers yesterday. “It is an excellent
result, the Minister told the press after
the 9 blocks were awarded, after tough
competition, to the British company BP
(3), the Anglo-Dutch company Shell
(2), the Australian company BHP (2)
and the Emirate Company Gulf Kesyton
(2) for a total investment amount of 133
million dollars. The Minister called upon
the companies which did not succeed in
obtaining blocks to "persevere" and to
participate in the next appeals for tenders
which must be launched in accordance
with the new hydrocarbons’ law.
This law has to be published in the
Official Journal next May, specified the
Minister. “The hydrocarbons’ law will
be published next month”, he said,
without specifying the date of the next
appeal for tenders. For his part, the
november 2005
Chairman and CEO of Sonatrach, Mr
Mohamed Meziane, hailed this "very
good result" before reiterating to the
foreign companies his "complete desire
for cooperation" as well as "the availability
of Sonatrach to give them any assistance
and help required for them to correctly
carry out their oil operations" in
Algeria. He assured these companies "of
the respect of all the contractual commitments
and of the benefit of the long
and rich experience of a diversified partnership
which the Sonatrach Group has
been practising for almost twenty years
and, now, with international companies
of all sizes, all profiles and of all geographic
origins". The experience acquired
from the partnership such as
Sonatrach's strategic development
option, added to the knowledge of the
Algerian mining domain and to the
"strong positions" which Sonatrach
occupies as well as its proven mastery of
the gas and oil industries, enable the
company "to face the future with optimism",
he added.
These assets, said Mr Meziane “authorise
us to express our full satisfaction further
to the adoption of the new hydrocarbons’
law and which supports our
capacity to seize all the new opportunities
which it offers us as well as all the oil
companies, regardless of whether they
are Algerian or foreign".
“In this case, it is highly likely that at the
time of the next appeals for tenders on
Algerian exploration projects, Sonatrach
will be with you in the room and no longer,
as is the case today, opposite you in
the forum", Sonatrach's Chairman and
CEO also said.
Mr Meziane indicated to the press that
Sonatrach is “ready” to conform to the
new hydrocarbons’ law and will now
behave as a “manager” and no longer as
a representative of the State, which will
now assume its natural role of control
and regulation.
“We will participate in the new appeal
for tenders as an economic operator,
either alone or in partnership, whether
in Algerian or abroad”, he added, saying
that he was confident about doing so.
Record success for
appeal for tenders
■ Nine out of the 10 licences
offered have been awarded
■ Shell’s great come back
■ BP and BHP Billiton reinforce
their positions in the country
Launched at the start of October 2004, the
sixth international appeal for tenders for
exploration is the one which produced the
best results since the start of this process for
awarding new contracts in Algeria in 2000.
Out of the 10 licences offered, nine have
been awarded, i.e. a 90% success rate whereas
the previous record was 80% with the
fifth appeal for tenders.
The only perimeter which did not find a taker
is the Bir Romane block in the Berkine basin.
Bir Romane had, furthermore, already been
included in a previous appeal for tenders and
this new failure confirms that it does not
really arouse the interest of potential investors.
Overall, the competition was tough,
since about 60 companies participated in the
appeal for tenders.