Sonatrach ... Algerian state energy company
Algeria awards four of 31 oil, gas fields in auction
ALGIERS, September 30, 2014
Algeria awarded four of 31 oil and gas field blocks on offer to foreign consortiums in its first energy auction since 2011 and nearly two years after a militant attack on the country's Amenas gas plant killed 39 foreign oil contractors.
Royal Dutch Shell and Spain's Repsol won the Boughezoul area in the north of the country while Shell and Norway's Statoil won the Timissit area in the east. A consortium of Enel and Dragon Oil won the Tinrhert and Msari Akabli areas.
Algerian officials described the result as acceptable.
Foreign oil executives have in the past complained about Algeria's tough contract terms, difficult business environment and security worries.
The North African state supplies a fifth of Europe's gas needs, but it relies on mature fields for most of its energy output and looks to foreign explorers to help develop new reserves and increase flagging production.
"These are acceptable results and we will continue with our energy sector development," Sid Ali Betata, head of Algeria's hydrocarbons agency ALNAFT which oversaw the bidding.
Officials were optimistic before the bids, having delayed the auction twice after foreign players asked for more time to study the fields. Contracts will be signed at the end of October.
They reported strong initial interest from 50 companies and hoped to draw bids with incentives under a new oil law, improvements in security and the potential of fields on offer.
A disappointing 2011 auction secured bids for just two fields out of 10, one from Spain's Cepsa and the other from Algerian state energy company Sonatrach. But the new hydrocarbons law passed in 2013 offers tax and contractual incentives, and benefits for unconventional energy investments. -- Reuters
