Minister: Algeria's New Discoveries May Double Gas Output

Licensing Rounds

With maturing fields and less investment, Algeria's gas for export has dropped to little more than 50 billion cubic metres from around 70 bcm in less than 10 years, U.S. Energy Information Administration data shows.

Its output of crude oil has fallen from a peak of 1.4 million bpd in 2008 to 1.2 million now. Yusfi said it hoped to continue producing at that level by optimising existing production though its Hassi Mesaoud field has peaked.

Sparse interest in the last upstream licensing round spurred the government to pass an amended hydrocarbon law in January but the changes may not be sufficient to counter the prospect of greater security costs after the attack on the In Amenas gas plant in the deep south killed 40 oil workers early this year.

Analysts say the law does not go far enough to encourage new investment or open up opportunities for shale gas production.

Yusfi said his country was working on the next round of exploration licences but did not give details about the blocks or the terms that would be on offer, though he did say that largely unexplored offshore areas could be included.

"We are concentrating on onshore... Also we are thinking of offshore. We're going to have our first drilling offshore during next year maybe," he said.

But that investment comes amid falling demand from Italy and tough competition for Asian markets from other gas producers.


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