Algeria Announces Winners In First Public Tender
The Algerian energy ministry awarded on February 15th three oil exploration blocks in its first public tender, Algerian oil official Mohamed Meziane said. U.S. firm Anadarko Petroleum Corp. won Block 406b in the Berkine Basin, while Russian firms Rosneft and Stroytransgas were awarded Block 245 in the Ilizi Basin.
The U.A.E.’s Gulf Keystone Petroleum was given Block 126 in the eastern region of Constantine, while Houston-based Burlington Resources and China’s Shingli were unsuccessful in their bids for Block 406b.
Three other blocks on offer -- Block 237a in the southeastern Berkine Basin, Block 332 in the Ahmet area and Block 348 in Timimoun -- were not awarded and will be included with other acreage on offer later in the year.
Meziane said that at least 60 oil and natural gas exploration and production blocks would be tendered over the coming five years, and fields under state-run Sonatrach’s ownership could also be included in future offerings to improve recovery rates.
An official from Sonatrach indicated that a commission overseeing the bidding had chosen the companies offering the lowest production-sharing terms.
Anadarko will get a 44 percent share of future production from its block, while Rosneft and Stroytransgas will receive 37.6 percent and Gulf Keystone will take 30 percent.
Under the contract terms, the cost of investment in exploration and production on the blocks will be split 60-40 between the foreign companies and Sonatrach.
© 2001 Mena Report (www.menareport.com)