Shell Awarded Exploration Blocks in Algeria

Sonatrach has awarded Shell a contract for the prospecting, appraisal and exploitation of hydrocarbons in the Reggane and Timimoun basins as part of the sixth Algerian exploration bid round.

The contract award relates to Reggane Djebel Hirane and Zerafa blocks, and marks the re-entry of Shell into the Algerian upstream.

Shell, as operator, is committed to the following work programs:

Reggane Djebel Hirane: A first Exploration Phase consisting of two exploration wells, 750 kilometers of 2D and 900 square kilometers of 3D seismic.

Zerafa: A first Exploration Phase consisting of two exploration wells, 960 kilometers of 2D and 540 square kilometers of 3D seismic.

The contract also provides a framework for joint exploitation of any commercial hydrocarbons resulting from exploration and appraisal activities in the blocks. The structure of the joint operating body is to be defined at a later stage.

A total of ten exploration blocks were on offer in the sixth Algeria exploration bid round. Matthias Bichsel, Global Exploration Director of Shell Exploration & Production, said today: "We are delighted to have this opportunity to work with Sonatrach to explore these onshore prospects in Algeria. We believe Algeria has significant potential and are excited at this opportunity to re-enter the country, and for Shell to work in these emerging basins."