Algeria Signs New Oil E&P Contracts With Foreign Firms

Algeria has signed new oil exploration and production contracts with foreign companies in an effort to boost its oil reserves.

State-run Algerie Presse Servicesaid late Monday that China National Petroleum Corp. signed two agreements for the first time, with the first deal targeting exploration at blocks 102-A and 112 on Tliouanet perimeter in the Cheliff basin.

Under this contract, CNPC will spend around $16.5 million over five years in seismic acquisition works over 1,000 kilometers and the drilling of two wells.

The CNPC's second agreement was for block 350, located in Guern Ech Cheikh perimeter in the Oued Mya basin, with an investment outlay of $15 million over five years, the APS said.

Petro-Canada signed a deal for block 431-B in Zotti perimeter in Amguid Messaoud basin, with an investment budget of $17 million over five years. Its program includes seismic acquisition works over 600 kilometers and drilling of two wells.

A fourth contract was secured by a consortium of Spain's Repsol-YPF SA , Germany's RWE AG and Edison SpA of Italy. These companies will spend a combined $22.5 million in oil developments in blocks 332-A, 341-A3, 339- A1 and 337-A1 at M'Sari Akabli in the Ahnet basin, APS said. The consortium work will involve seismic survey over 300 kilometers and the drilling of three wells.

Another consortium comprising France's Total SA and Spain's Compania Espanola de Petroleos SA , or Cepsa, signed an agreement to explore blocks 309-B1, 310-B1, 311-B and3191 in Bechar field, with a total investment plan of $8.5 million over five years. This program involve oil prospecting work over 215 kilometers, exploration work over 300 kilometers and the drilling of one well.

Algeria's national oil company, Sonatrach , represented the government in all the contracts.