Sonatrach launches licensing round for 25 blocks
Algerian energy giant looking for interested parties for exploration
Algerian energy giant Sonatrach has launched its eighth licensing round for 25 blocks in 10 contract areas in the country.
The state-owned company 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's eighth licensing round
Blocks: 337b, 338b, 339a2, 339b, 340b, 341b, 341a2
Area: 17,358 sq. km
Blocks: 223b, 245n
Area: 2,902 sq. km
Permit: Gara Tesselit /Ouest Ohanet
Blocks: 245 Sud, 239b, 234c
Area: 6,665 sq. km
Permit: Sud-Est Illizi
Blocks: 232, 241
Area: 5,641 sq. km
Basin: Amguid Messaoud
Blocks: 433a, 416b
Area: 6,034 sq. km
Permit: Bir Romane
Blocks: 414s, 443b, 444n
Area: 4,641 sq. km
Permit: Hassi Bir Rekaiz
Area: 5,670 sq. km
Permit: Timissit Ouest
Blocks: 208Est, 211
Area: 6,240 sq. km
Permit: El Aricha El Tahtania
Area: 4,392 sq. km
Permit: Reggane Djebel Hirane
Blocks: 328b, 362b, 352d
Area: 9,386 sq. km
Licensing round schedule
27 July 2009: General presentation to pre-qualified companies of data and contract terms.
15 August–22 October: Data room opens.
2 September–26 October: Clarification meetings relating to contractual and statutory dispositions, with possible contractual changes discussed.
9 November: Final contractual documents published.
20 December: Bidding deadline.
16 January 2010: Contract-signing ceremony.