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 ALGERIA
North Africa
French companies discovered the majority of Algeria’s
producing reserves before 1965. Some years after nationalisation the
state oil company (Sonatrach) released large tracts of acreage to foreigners
in the early 1990s and these
areas have now been licensed and explored in some detail.
Exploration for oil began in Algeria in 1892 on the basis
of oil seeps found close to Algiers and modest amounts of oil have been
produced since 1908. The small Oued Guetterini field, put
onstream in the northern Hodna Basin in 1948, marked the beginning of
modern production. In 1946 exploration of the
Saharan areas of southern Algeria had also begun and the first discovery
well was drilled in 1954.
 Success led to intense drilling by the French and in 1956
the giant Hassi Messaoud oil field, with estimated reserves of 10 Bn
Bbls, and the giant Hassi R’Mel gas and condensate field, with estimated reserves of
2.3 Tcm, were discovered. They are both still substantial producers.
After independence in 1962 exploration activity declined,
especially at the end of the 1960s when the oil assets were nationalised.
However by 1986, relaxation of socialist pressures and a new policy to
encourage investment to reverse the rapid depletion of reserves led to a
return of foreign companies.
Tracts covering most of central Sahara, particularly in
the areas around old oil fields, were leased and companies were invited
to take over depleting fields to implement EOR methods. As a result in
1994 Algeria became the world’s most prolific country for finding
hydrocarbons.
Exploration is now carried out under standard PSC terms
with the Ministry of Energy and Mines and Sonatrach
issuing production sharing contracts (PSCs) and organising licence
rounds. Many new licences have been awarded in the Berkine (Ghadames), Illizi,
Timimoun and other basins in recent years and a number of giant gas
field developments are in progress.
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