Algeria's Energy Future was launched at a half-day round-table seminar at Chatham House, London, on Wednesday 6 April.
The report was presented at the seminar by its lead authors, Jon Marks and John Hamilton, and critically assessed by Algerian and international experts. Read more
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The 2011 edition features more than 45 maps and charts drawn with expert care by journalist cartographer David Burles. Read more
Briefings and Reports 2
AfricaHardball is an executive dialogue that brings together policy-makers, industry leaders and analysts to discuss the key political issues affecting African markets in frank and open terms.
The next AfricaHardball roundtable will be held on 1 December in London, focusing on North Africa Read more
Briefings and Reports 3
A detailed and frank analysis of Libya’s energy sector
Published in July 2010, Libya's Energy Future provides authoritative, independently sourced analysis of Libya’s energy sector policy and history, examines the country’s governance and financial record and assesses the potential for international partners to do business with its institutions and interest groups.
On the page below you will find a selection of articles from the African Energy archive. All links preceded by a padlock symbol require a subscription.
It will be another test for Algeria as a destination for international oil companies (IOCs) when bids are opened on 20 December, in the second licensing round to be run by regulator Agence Nationale pour la Valorisation des Ressources en Hydrocarbures (Alnaft). Issue 176, 11 December 2009.more
Illizi yields potential gas riches
Algerian officials can point to a number of significant advances to counter IOC arguments about a deteriorating investment environment. Issue 176, 11 December 2009.more
Berkine: the ‘new Hassi Messaoud’
It has been a year of crucial developments in the Berkine Basin, where Gazprom entered as an upstream player in the first Alnaft round, at El Assel (blocks 236b and 404a1, operated by Sonatrach) and Eni came in with the purchase of First Calgary Petroleum’s Menzel Ledjmet holding. Issue 176, 11 December 2009.more
Algerian parastatal finance debate rolls on
Sonelgaz Holding director-general Noureddine Bouterfa has again raised the possibility of a tariff increase to help the company overcome its burgeoning debt. Energy and mines minister Chakib Khelil suggested last June that the Algerian utility might be recapitalised, but little has happened since. Issue 176, 11 December 2009.more
More success for Petroceltic
Petroceltic International has announced a successful test of the INE-2 well on the Isarene Block in the Illizi Basin. The INE-2 well on the Isas structure had a gas well test rate of 4mcf/d. Issue 175, 27 November 2009.more
Algeria-Morocco: 1,000MW, 400kV interconnection
Despite the land border being closed since 1994, Algeria’s Sonelgaz and Morocco’s Office National de l’Electricité (ONE) have continued to integrate their grids, with a third 400kV interconnection. Issue 174, 13 November 2009.more
North Africa renewables update – steady development while Europe waits on mega-projects
African Energy’s new listing of solar, wind and other renewables projects in five North African economies reveals a steady pace of development for wind schemes, notably in Egypt and Morocco, and a gradual acceleration in the number of solar projects. Southern Mediterranean planners are examining a range of other technologies – to generate power from urban waste, for example – and, for the longer term, nuclear options. The spread of projects is shown graphically by map-maker David Burles, while Our Casablanca Correspondent reports on recent legislative developments in Morocco Issue 173, 30 October 2009.more
Sonatrach shortlists Tiaret and Algiers refinery bidders
Sonatrach has shortlisted four companies – Technip, Sinopec, CB&I Lummus and Saipem with Chiyoda Corporation – for the front-end engineering design (FEED) study on its long-awaited Tiaret refinery, now planned to produce 15m t/yr of products. Issue 173, 30 October 2009.more
Busy Bonatti gets $150m El Merk pipeline EPC
Italy’s Bonatti Group has been awarded another major contract in Algeria, to carry out engineering, procurement and construction (EPC) work on the El Merk oilfield development project.
Issue 173, 30 October 2009.more
Talk of Gassi Touil compromise
Reports that Sonatrach and its Spanish partners Repsol YPF and Gas Natural may be about to settle their bitter differences over the cancelled Gassi Touil contract would give a fillip to energy co-operation across the Mediterranean, but could further complicate gas developments in the Sahara. Issue 173, 30 October 2009.more
Pointer – Petroceltic reports higher flows from Isarene well Issue 173, 30 October 2009.more
Mediterranean states need surge of political will to overcome renewables hurdles
The European Commission and energy ministers of the Mediterranean and Gulf countries have expressed their commitment to expanding renewable energy projects, despite challenges ranging from funding to legal and regulatory frameworks, writes François Misser. Issue 172, 16 October 2009.more
Timimoun gas field development gets go-ahead
Lack of interest in recent Algerian licensing rounds has set back some upstream developments, but Total, Cepsa and Sonatrach have won approval for development of the Timimoun gas field to add 1.6bn m3/yr from 2013 Issue 172, 16 October 2009.more
Algerian gas exports slide as projects fall behind
Medgaz may or may not be on target, but almost all of Algeria’s other major gas export projects are experiencing delays, and the date for achieving export targets has been pushed back further. Meanwhile, the slump in southern European gas demand has contributed to a decline in exports and a fresh deterioration in Spanish-Algerian relations, writes Richard Nield in Buenos Aires Issue 172, 16 October 2009.more
Sonatrach’s extensive programme to upgrade its domestic trunk pipeline network, worth an estimated $1bn over five years, has fallen about a year behind schedule. Issue 172, 16 October 2009.more
Petroceltic makes gas find
Petroceltic International has made a third gas discovery with the AT-1 well on the Isarene permit in the Illizi Basin (AE 163/18). Issue 171, 2 October 2009.more
Trans-Saharan pipeline politics defy business logic
Gazprom’s joint venture with Nigeria has boosted a project that continues to attract the backing of governments and IOCs despite continuing doubts over its commercial viability Issue 169, 4 September 2009.more
Partners face big payments to exploit Ahnet’s upside
Sonatrach is hoping that competition between major gas developers will lead to keen bidding for a stake of up to 49% in the three Ahnet gas fields, which are being offered again as a minimum 4bn m3/yr development package by Agence Nationale pour la Valorisation des Ressources en Hydrocarbures (Alnaft) in its second oil and gas licensing round, launched on 30 June (AE 166/4). Issue 169, 4 September 2009.more
Pointer – New Illizi Basin gas find Issue 169, 4 September 2009.more
While there has been no major incident since December 2007, security remains a significant concern for international oil companies operating in Algeria. Algiers-based IOCs continue to maintain high levels of security. Issue 167, 17 July 2009.more
Pointer – Hadjret En Nouss start-up
Abu Dhabi state investment agency Mubadala Development Company has announced the start-up of the 1,227MW Hadjret En Nouss gas-fired thermal power plant at Tipasa. Issue 167, 17 July 2009.more
Gulf Keystone sells up
Faced with a five-year wait before it could hope for a return from its share in the Hassi Ba Hamou (HBH) permit in central Algeria, London Alternative Investment Market (AIM)-listed Gulf Keystone Petroleum has “suspended” investment and put its interest up for sale. HBH operator BG Group is considering its options following Keystone’s decision to look for a buyer for its 38.25% stake. Issue 167, 17 July 2009.more
Pointer – Touat start-up in 2013
Sonatrach and GDF Suez have received approval for their development plan for the Touat gas licence and plan to start production in 2013. Exploration and appraisal of the permit near Adrar, where seven wells have been drilled, started in 2003. Issue 167, 17 July 2009.more
Algeria goes into overdrive with licensing round and $4.2bn-worth of contracts
Critical energy sector developments moved slowly while the presidential election dominated public life. But in a recent flurry of activity, the country has put gas infrastructure investment at the top of its agenda, writes John Hamilton. Issue 166, 3 July 2009.more
Profit slumps at Algeria’s Sonelgaz as investment programme accelerates
Algeria’s Sonelgaz is looking at options for financing its investment programme after recording only a token profit last year. Issue 166, 3 July 2009.more
Pointers – Saipem contract for gas pipelines; ABB to work on gas treatment plants; Airborne gravity survey contract
Italy’s Eni is renegotiating the economic terms of some of its production-sharing agreements with Sonatrach. The company said in its 2008 annual report that Sonatrach had requested a revision of terms to “restore the initial economic equilibrium” following tax changes brought in by Algeria’s hydrocarbons law in 2007, which introduced a higher tax burden for the national oil company. Issue 164, 5 June 2009.more
Samsung tables lowest bid for Skikda refinery upgrade
South Korea’s Samsung Engineering and Construction submitted the lowest bid for an engineering, procurement and construction contract for the rehabilitation, upgrade and modernisation of the 15m t/yr Skikda refinery. Issue 164, 5 June 2009.more
Eni supports Trans-Saharan gas project
Eni has become the latest major European oil company to express support for the Trans-Saharan Gas Pipeline (TSGP) project to bring gas across the Sahara from Nigeria to markets in Europe. Issue 164, 5 June 2009.more
Commitment to the market economy leaves questions unanswered
With President Abdelaziz Bouteflika safely re-elected, international oil companies have been hoping to see a shift back towards the more flexible, investor-friendly policies that Algeria pursued prior to its decision to revise the 2005 Hydrocarbons Law. Issue 164, 5 June 2009.more
Pointer – Orascom contracts for El Merk CPF
Egypt’s Orascom Construction Industries (OCI) has won contracts for construction work on the El Merk Central Processing Facility (CPF) in the Berkine Basin. The facility will be located in Block 208, 250km southeast of Hassi Messaoud. Issue 163, 22 May 2009.more
Pointer – Petroceltic drilling
Petroceltic International has begun drilling on its gas-prone Isarene permit, where the INE-2 well spudded on 16 May. Issue 163, 22 May 2009.more
Relizane power by year-end
The 465MW Relizane power station being built by Alstom for Société Nationale de l’Electricité et du Gaz (Sonelgaz) is expected to begin operating by year-end (AE 117/8). Issue 162, 8 May 2009.more
Sonatrach’s investment plans
Sonatrach expects revenues in 2009 to be half those of 2008, but the authorities are determined to show this won’t affect investment. Issue 162, 8 May 2009.more
Trans-Saharan gasline dream keeps momentum
Why build a pipeline across several borders and through potentially volatile regions when you could instead export the gas as LNG to a choice of markets? John Hamilton in Paris and Jon Marks examine the latest efforts to build momentum behind the TSGP. Issue 160, 3 April 2009.more
Isarene drilling to start in May
Ireland’s Petroceltic has given Schlumberger’s new Algerian joint venture Sahara Well Construction Services a contract for wellsite services for its drilling programme on the Isarene permit, which is due to start in early May. Issue 160, 3 April 2009.more
Russian field development to proceed
Regulator Alnaft has approved development plans put forward by a joint venture of Sonatrach, Rosneft and Stroytransgaz for the development of a pair of oil fields and a gas condensate field. Issue 160, 3 April 2009.more
Natural gas, not just a business opportunity but also a strategic issue
Gas is a strategic issue, for consumers anxious to ensure security of supply, as well as for exporters looking to maximise the yield on heavy investments in liquefaction and pipelines, and – in some cases such as Russia’s Gazprom – seeking to gain political advantage through their control of an essential commodity (AE 147/1, 143/24, 135/1). Issue 160, 3 April 2009.more
Petrofac wins big contract for El Merk CPF
Petrofac has been awarded a $2.2bn engineering, procurement and construction (EPC) contract for the El Merk central processing facility (CPF) in the Berkine Basin. Work on the contract is to be executed over the next 44 months, with first significant volumes from the project expected in 2012. Issue 159, 20 March 2009.more
PetroVietnam/PTTEP JV plans $2bn investment
PetroVietnam Exploration and Production Corporation (PVEP), Thailand’s PTT Exploration and Production (PTTEP) and state Sonatrach have announced plans to invest $2bn in a project to operate the Bir Seba oil field in the Touggourt permit (Blocks 433a and 416b) for over 25 years. Issue 158, 6 March 2009.more
Sorfert plant wins long-term gas supply deal
Sonatrach has signed a long-term gas supply agreement for an ammonia and urea plant being built by at Arzew by Sorfert, a joint venture of Sonatrach and Egypt’s Orascom Construction Industries (OCI). Issue 158, 6 March 2009.more
Daewoo wins Arzew LNG contract
Daewoo Engineering & Construction has been awarded a contract worth $280m for work on the Arzew liquefied natural gas plant (AE 144/21). Issue 158, 6 March 2009.more
Petroceltic signs rig deal for Isarene drilling
Petroceltic International has signed a rig contract with KCA Deutag for a seven-well drilling and testing programme on the Isarene permit. Issue 156, 6 February 2009.more
Three new gas finds for Repsol
Repsol YPF has made three new gas finds, in the Reggane basin, the Ahnet Basin, and the Berkine Basin. The Reggane find, in well KLS-1, is part of a new structure known as Kahlouche Sud. Issue 156, 6 February 2009.more
Gulf Keystone moves to HBH phase two, loses out on GKS field
Operator BG Group and Gulf Keystone Petroleum (GKP) have completed first prospecting period work commitments at the Hassi Ba Hamou (HBH) permit in the Bechar Basin, following a successful testing of a sixth well. Issue 156, 6 February 2009.more
Gas supply talks with Croatia
Algeria is in talks on the possible supply of natural gas to Croatia. Energy and Mines Minister Chakib Khelil told reporters that the quantity had yet to be determined, but the gas could be delivered by pipeline via third countries, or on a swap basis Issue 156, 6 February 2009.more
Jury out over Algeria’s upstream attractions
African Energy’s latest Algeria upstream update shows there are plenty of major development projects under way, but IOCs are concerned the investment climate is not as friendly as it seemed when they committed to new schemes in mid-decade. Although Algiers is putting on a brave face after a disappointing licensing round performance, an inquest is under way that might persuade the authorities to take a more welcoming stance to IOCs, write Our Algiers Correspondent and Jon Marks, with research by Dagmara Ginter, John Hamilton and Nadine Marroushi. Issue 155, 23 January 2009.more
Sonatrach is in talks with 4Gas, operator of the planned Rotterdam regasification terminal, on booking capacity at the site. Issue 155, 23 January 2009.more
Gazprom plans following bid win
Russia’s state-controlled Gazprom has said it will invest $120m in exploration of the El Assel perimeter, which it secured in the seventh bid round on 13 December. The area is already operated by Sonatrach, and Gazprom will have a 49% share of the production-sharing contract. Issue 154, 9 January 2009. more
The Medgaz consortium – Sonatrach (36%), Cepsa and Iberdrola (both 20%), Endesa and GDF Suez (both 12%) – has completed construction of the ultra-deepwater subsea tranche of its 210km, 24-inch gas pipeline. Issue 154, 9 January 2009.more
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