Vietnam Makes An Entry Into Algeria's Energy Open House

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Major reforms of hydrocarbon laws instigated by Algeria's ministry of energy and mines and Sonatrach, the state oil company, are designed to attract investment and double to 40 the number of foreign companies operating in the country. Crude oil production capacity is targeted to expand to 1.5 million bpd from 827,000 bpd in 2001. With proven oil reserves of 9.2 billion barrels, Algeria, an OPEC member, is also the second largest LNG producer in the world and the second biggest suppler of natural gas to Europe, after Russia. Sonatrach estimates that gas reserves stand at 204 trillion cubic feet.

Seven exploration blocks have recently been awarded to foreign oil companies in an international tender process, which offered a total of ten blocks. This was the third licensing round since 2001 and saw the successful bidders committing to a minimum investment of $107 million in seismic surveys and well drilling programs over the next three years.

The ministry of energy and mines is using these tender offers to encourage exploration in its vast Saharan interior regions. Two of the three blocks which were not taken are situated in the promising Hassi Berkine basin.

A newcomer in the successful bidding, amongst a list of major energy resource companies, is the state owned Petrovietnam Investment and Development Company which won a block in the Oued Mya area, north of Hassi Berkine.

To provide a forum for the strategic, commercial, and technical aspects of the country's energy policies and potential, ALOGE 2002, the 3rd Algerian oil and gas exhibition and conference, will be held in Algiers in Mid December this year.