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
The African Energy Atlas has established itself as an indispensable resource for energy industry professionals.
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.
Algeria appoints regulatory officials, slimming down the ranks of Sonatrach, ministry staff
The formal appointment on 14 November of the management boards of the two new regulatory agencies signalled an end to national oil company Sonatrach's monopoly of the hydrocarbon sector, and is intended to make the Algerian energy industry more efficient and transparent. Issue 93, December 2005.more
Lavalin shows off extent of local penetration ahead of HE decision
Looking towards further mega-contracts, including the long-awaited decision on the1,200MW Hadjeret Ennouss power plant, Canada’s SNC-Lavalin has formally opened an Algiers office under the SNC-Lavalin Maghreb Eurl banner, run by Raymond Fortin. Issue 93, December 2005.more
Dana widens portfolio with GdF deal
Dana Petroleum has expanded its asset base with a deal with Gaz de France that takes the company into Algeria and Egypt. Under the deal, Dana will acquire from GdF 15% of Blocks 352A and 353, in the Sbaa Basin of south-west Algeria, 30% in the West El Burullus Concession in Egypt’s Nile Delta, and additional assets in the North Sea. Issue 93, December 2005.more
Pointer – Halliburton’s local arm wins El Merk EPC contract
Sempra LNG agrees US export deal as Algeria raises trading up the agenda
San Diego-based Sempra LNG, which is developing three liquefied natural gas reception terminals in North America, has signed a heads of agreement with Sonatrach for the import of 250m ft3/d of Algerian gas into the United States. Issue 92, November 2005.more
Algeria plans a framework law to promote the peaceful use of nuclear power
Energy and Mines Minister Chakib Khelil is planning a new law to govern the development of a potential nuclear power industry in Algeria. In arguments echoing those of another Opec member, Iran – with which Algiers has often aligned itself – Khelil says that total dependence on hydrocarbons for electricity generation is “naturally constraining” because these resources are non-renewable. Issue 92, November 2005.more
Another success for Gulf Keystone as contracts ratified
Two production-sharing contracts, awarded during Sonatrach’s April 2005 licensing round, have been ratified and approved by presidential decrees, marking another step forward for the well-connected London-listed independent Gulf Keystone. Issue 91, October 2005.more
Statoil, Sonatrach mull integrated LNG project
Sonatrach and Statoil agreed to examine the prospects for an integrated liquefied natural gas project, when their chief executives signed a memorandum of understanding on 4 August covering co-operation in Algeria, Norway and internationally. Issue 90, September 2005.more
Globeleq out of Kahrama IWPP
Following months of studies and due diligence, UK-owned, Houston-based developer Globeleq has decided not to buy a stake in the nearly completed 321MW and 86,000 m3/d of desalinated water Kahrama independent water and power project at Arzew. Issue 90, September 2005.more
Medgaz pipeline rises up the order of priorities
Faced with projections that contracted gas import flows will not be able to satisfy demand from 2009 onwards, the Spanish government has formally given the Medgaz project maximum priority rating and confirmed that construction on the subsea section will begin by July 2006. Issue 89, August 2005.more
Downstream project draws a range of potential investors
More than a score of international companies flew in for the data room presentation of Algeria’s new downstream development programme – a turnout that vindicates Energy and Mines Minister Chakib Khelil in his drive to further open up opportunities for investors in the oil and gas industry. Issue 89, August 2005.more
Earth to move for Hassi Messaoud as Algerian planners move town
The presence of major untapped reserves directly under Algeria’s ‘oil capital’, and the economic opportunity and H&S risks they represent have forced planners’ hands – the desert boomtown is to be shifted some 70km to the west, write Lyès Sahar in Algiers and African Energy staff. Issue 88, July 2005.more
ENI, Algiers agree on Transmed gasline expansion
As liberalisation beckons, Sonatrach has reached agreement with Italy’s ENI on expanding the capacity of the Transmed gas pipeline to 33.5bn m3 by 2012. After three years of talks, the two sides agreed that in a first phase, capacity will be increased from today’s 27bn m3 to 30.2bn m3 in 2008. Issue 87, June 2005.more
Algeria’s new hydrocarbons law passes at last: now for the hard part?
Algeria’s new liberalising hydrocarbons law has finally made its way through parliament, formally ending four years of in-fighting over the direction of policy and placing Sonatrach on a more commercial footing. However, plenty of questions remain over how it will work in practice, writes David Drury. Issue 86, May 2005.more
Hassi Messaoud surveys, Taoudeni plays
WesternGeco and the local Enageo are starting work on seismic surveys around Hassi Messaoud town, African Energy has learned, raising the prospect that residential areas of the southern oil capital could be relocated to take account of its huge growth in recent years and Sonatrach’s belief that significant oil and gas reserves could be located under the town itself. Issue 86, May 2005.more
Algeria offers up a major GTL scheme
Sonatrach’s first gas-to-liquids scheme is likely to interest the supermajors, and could create a new boom for North Africa as Qatar has second thoughts about even more new GTL schemes, writes Jon Marks. Issue 86, May 2005.more
The latest licensing round awards, announced on 9 April, saw the return of two supermajors, BP and Royal Dutch/Shell, to the exploration sector. Of the nine gas-prone blocks awarded, Shell took two, following a 20-year absence. Issue 86, May 2005.more
Major Algerian contract for Siemens as local giants flex financial muscles
Algerian parastatals have turned to the sort of conventional credits they understand, rather than market-driven project financing, to structure the latest power station contract. But with more contracts being let for power and desalination projects, don’t give up on Algerian project financing just yet, writes Jon Marks in Algiers. Issue 84, March 2005.more
Ahnet contract in doubt as other Algerian schemes make progress
A contract for Petronas and Gaz de France (GDF) to develop the estimated $2bn Ahnet project seems in jeopardy as state hydrocarbons company Sonatrach seeks to persuade the Malaysian/French developer group to speed up their timetable. Issue 84, March 2005.more
Tinhert GTL has potential
The signs from Algiers are that there is sufficient IOC interest in the proposed Tinhert gas-to-liquids scheme that tenders– which might also be conceptualised as an integrated liquefied natural gas project were the right bid to be structured – will be issued relatively soon (AE 82/6). Issue 84, March 2005.more
Watershed year beckons for Algeria’s hydrocarbons industry
With the draft hydrocarbons law now being discussed by government before going to parliament, a new licensing round under way and a number of major projects set to confirm Sonatrach as a global-scale gas market player, the Algerian industry is set to make headlines throughout 2005, write Jon Marks and Liès Sahar. Issue 83, February 2005. more
Closer co-operation with Spain
Algeria’s gas co-operation with Spain has taken on new momentum, with plans for construction work to start on the Medgaz pipeline and award of the Gassi Touil integrated LNG contract to Repsol YPF/Gas Natural (AE 81/18). In addition, work is under way to increase capacity of the existing Pedro Duran Farell pipeline (Maghreb-Europe gasline or GME) via Morocco by about 10bn m3/yr. Issue 83, February 2005.more
Potentially new-look Kahrama takes Algerian IWPP closer to take off
The long-awaited Arzew IWPP is set for a renewed bout of activity with IDB funds and a new equity partner on the way as initial developer Black & Veatch pulls back and new faces line up to bring the project to fruition, write Kevin Godier and a Special Correspondent in Algiers. Issue 82, January 2005.more
Sonatrach controls the gas chain as Spanish beat off stiff competition for Gassi Touil integrated LNG
The award at last of the Gassi Touil integrated LNG scheme underlines Algeria’s commitment to attracting foreign investment, particularly to schemes that can help it secure new markets in the USA and elsewhere. But the deal also shows that Sonatrach intends to remain a major player even in the biggest investment deals, write James Gavin, Liès Sahar and Jon Marks. Issue 81, December 2004.more
Sixth licensing round launched
The Ministry of Energy and Mines and state company Sonatrach have launched the sixth exploration licensing round, offering ten perimeters, some made up of several blocks (average size 9,595km2). Issue 80, November 2004.more
ROD development comes on stream
Several months late, crude started flowing at the ROD field, at around 18,000 b/d, partner BHP Billiton announced on 27 October. Issue 80, November 2004.more
Sonatrach sees progress for Tinhert, Gassi Touil projects
A gas development scheme to tap reserves at Tinhert is still on the agenda, even though a previous effort to develop the field with Canadian partners failed, state company Sonatrach’s E&P director Djamel Bekkouche told the Africa Upstream conference in Cape Town. Issue 80, November 2004.more
Algeria’s stalled hydrocarbons law is revived
Algeria has attracted considerable investment under its existing oil and gas regime, but the sector could still do with a boost – and it could be set to enter a new phase now the government has decided to revive the stalled hydrocarbons law, write Liès Sahar in Algiers and Jon Marks in London. Issue 79, October 2004.more
Sonatrach has launched a tender for a $800m-$1bn, 4m t/yr liquefaction train at its Skikda LNG complex to replace the three trains destroyed in the January explosion. Issue 79, October 2004.more
Khelil celebrates Sonatrach’s Peruvian venture
North African industry professionals and the Algerian media are paying unusual attention to a major project in South America, when phase one of the Camisea gas scheme in Peru has finally been inaugurated. The reason for the interest is that Sonatrach has a 10% acreage stake and a 21.18% investment in the Camisea pipeline. Issue 78, September 2004.more
ABB wins grid upgrade work, bids in for Hadjret en Nouss
State utility Sonelgaz has awarded ABB contracts worth $85m for three projects to upgrade its power grid to meet fast-growing demand in Algiers and the coastal region. Issue 77, August 2004.more
Skikda LNG explosion set back project, created opportunity
The January 2004 explosion at Sonatrach’s Skikda LNG plant has set back the pace of development at the $90m Linde Gas helium factory in the Mediterranean port, but the expected construction of new, larger LNG facilities could persuade the group to expand its long-term plans. Issue 77, August 2004.more
Iberdrola signs first deal for Medgaz gas, In Salah starts up
Spain’s Iberdrola has signed a gas purchase and sale agreement for 1bn m3/yr of natural gas from 2007 to be supplied via the Medgaz pipeline. Issue 77, August 2004.more
Algeria developers see light at the end of the public/private finance tunnel
Progress on Algerian desalination and power projects represents an important step forward in mobilising financing and risk capacity for domestic energy needs – with an Algerian take on the public/private model, writes Paul Melly. Issue 77, August 2004.more
‘Khelil’s law’ returns to the Algerian agenda, but traditional values block speedy oil liberalisation
President Bouteflika’s re-election has given new life to Algeria’s revised hydrocarbons law, but traditional values run contrary to the ‘Khelil Law’, further complicating oil and gas sector reforms, writes Paul Melly in Algiers. Issue 76, July 2004.more
Algeria moves slowly ahead with sector overhaul
Progress in the restructuring of state utility Sonelgaz could lead to the eventual emergence of a new electricity market with third party access, self-financing power and gas companies, and more transparent bidding. This is an ambitious programme in the Algerian context, writes Paul Melly in Algiers, with Jon Marks. Issue 76, July 2004.more
A strong field of companies have responded to a call for expressions of interest in a solar/gas hybrid power plant project at Hassi R’mel, where New Energy Algeria Ltd (NEAL) plans a plant of about 150MW capacity, including 25MW of solar. Issue 76, July 2004.more
Axens to study downstream operations
Sonatrach has given IFP Group subsidiary Axens a contract for a crude oil and condensate strategic optimisation study, which will look at the refining and distribution network for oil products in Algeria to 2020, including the role of Sonatrach’s Naftec and Naftal subsidiaries. Issue 76, July 2004.more
After the election, time for Algiers to think seriously about its gas strategy
The presidential election gave off a strong signal of ‘stability’ to investors, and Algeria is undoubtedly superbly located to take advantage of global gas market growth. But another postponement of the Gassi Touil integrated LNG project and concerns that most reserves are already committed means the government and Sonatrach have some work to do to keep IOCs interested in a competitive market, write David Drury and Jon Marks. Issue 74, May 2004.more
Sonatrach signs E1.6bn excred accords with European banks
State hydrocarbons company Sonatrach has signed another six framework agreements with European banks for a total value of €1.6bn ($1.9bn) to finance goods and services under its 2004-08 development plan. Issue 74, May 2004.more
Algeria’s fifth licensing round offers ten onshore blocks
The Energy and Mines Ministry is offering ten onshore exploration blocks in Algeria’s fifth international tender, which closes in July, and has said that a sixth round will follow later this year. Issue 73, April 2004.more
Big loan for Skikda power scheme
SG Corporate & Investment Banking has arranged what it claims is Algeria’s largest export finance transaction to date, a $382m loan to finance an 825MW power project in Skikda. Issue 73, April 2004.more
Pre-election Algeria confronted by post-election problems
For the first time since independence in 1962, the outcome of an election to lead Algeria is not certain before the first ballot is cast. International oil companies (IOCs) pouring billions of dollars into the country’s southern oil and gas fields do not seem duly concerned. The consensus is that Abdelaziz Bouteflika will be returned as Algeria’s president following elections on 8 April, although surprises cannot be excluded after a bitter electoral campaign in an unsettled country. Issue 72, March 2004.more
Chinese consolidate move into North Africa
Algerian state hydrocarbons company Sonatrach and China National Petroleum Corporation (CNPC) signed a draft co-operation agreement on 4 February during a visit to Algiers by Chinese President Hu Jintao. Issue 72, March 2004.more
FCP powers ahead on Ledjmet
First Calgary Petroleums has completed a fifth successful gas well on its 100% held Ledjmet Block 405b and is carrying out production testing. Issue 72, March 2004.more
Skikda blast will not dampen US appetite for LNG
The explosion that destroyed three of the six LNG trains at Skikda led to some soul searching about the future of Algerian gas exports and the security of the global LNG trade. But the US gas boom will continue and the future remains bright for African producers, writes David Drury. Issue 71, February 2004.more
Sector reshuffle: a move towards deregulation?
There has been a significant reshuffle in the Algerian power sector following the sacking of state utility Sonelgaz’s managing director Aïssa Abdelkrim Benghanem. His successor is former Algerian Energy Company (AEC) head Nourredine Boutarfa, a Sonelgaz staffer since 1974. Issue 71, February 2004.more
Companies sign for half of fourth round blocks
International oil companies including China National Petroleum Corporation (CNPC), Petro-Canada, Repsol YPF, RWE DEA and Total signed contracts with Energy and Mines Minister Chakib Khelil and Sonatrach on 22 December. Issue 70, January 2004.more
Locals line up for Sonatrach bond, foreign loans possible
Banque Extérieure d’Algérie (BEA) is lead managing a 5bn dinar ($72m) local currency bond for Sonatrach in the state energy company’s second foray into this market. The funds will be used “to finance research and development”. Issue 70, January 2004.more
New Berkine basin find provides relief for Anadarko
State company Sonatrach and its partners in the Berkine North East permit have announced a new find with the BKNE-AAC-A well, helping to provide more positive newsflow for Anadarko Petroleum Corporation during a period when heavy investment commitments on its international programme have forced the US independent to make spending cuts and takeover speculation has refused to go away (AE 67/17). Issue 69, December 2003.more
North African gas crosses the ‘olive tree line’: how far can Algerian LNG go in securing new markets?
For two decades, Algeria and other African gas producers focused on selling into southern Europe, but markets further north now beckon, writes David Drury, with additional reporting by Jon Marks. Issue 69, December 2003.more
Hadjret Ennous back from the dead?
In another sign that Sonelgaz is serious about speeding up its electricity development programme, the state utility and Algerian Energy Company (AEC) partner Sonatrach are reviewing plans for the estimated total 1,200MW Hadjret Ennous combined cycle scheme. Issue 68, November 2003.more
Khelil upbeat on Algerian hydrocarbons as Meziane takes over
Mohamed Meziane is taking over as Sonatrach chief at an “historic time” for the state company, according to Algerian Energy Minister Chakib Khelil. David Drury tests the temperature of Algeria’s oil and gas industry. Issue 67, October 2003.more
Speculation over Anadarko
A fall in Anadarko’s share price has fuelled market speculation that the company could sell assets or even seek a buyer. Italy’s Eni denied a report in the Financial Times on 25 September that it planned to link up with Shell to buy the US company. Issue 67, October 2003.more
Italians sign up for new imports via the Trans-Med pipeline
New gas sales to Italy are taking shape, with commitments from three companies to purchase gas through the Trans-Mediterranean pipeline from Q1 07, following the current phase of work to increase the Trans-Med’s capacity to 32bn m3/yr from a little over 24bn m3/yr. Issue 65, August 2003.more
BP’s Algerian sale creates new synergies on EU’s doorstep
The news that BP had reached a deal to sell half of its two big Algerian gas assets was not a big surprise, but the identity of the buyer, Statoil, was somewhat unexpected, writes David Drury. Issue 64, July 2003.more
Lavalin takes Skidka EPC, Alstom to build Aïn Beida unit
Canada’s SNC Lavalin was awarded the engineering, procurement and construction (EPC) package for the $450m, 730MW Skikda power plant on 7 June, fending off opposition from Germany’s Siemens, Spain’s Iberdrola and France’s Sofresid. Issue 64, July 2003.more
Innovations, but also doubts for Algerian round
Sonatrach unveiled a new 12-block oil and gas licensing round on 20 May, its biggest call for bids to date, with the state company offering offshore acreage for the first time and fields in a wider range of regions than ever before (AE 62/12). Issue 63, June 2003.more
El Merk development
The authorities have approved plans by Sonatrach and Anadarko to develop four onshore El Merk oil fields in Block 208. Issue 63, June 2003.more
Offshore boost for new bid round
Algeria is preparing to offer two offshore blocks as part of a new a new international licensing round expected to be tendered in May. Issue 62, May 2003.more
Arzew IWPP still on back burner
Financing for the $400-450m independent water and power project (IWPP) at Arzew remains some way off. Potential financiers are awaiting a new shareholding structure and the completion of Algerian power and water market studies before they begin due diligence procedures on the scheme. Issue 62, May 2003.more
Brussels offers interconnection incentive to recalcitrant Algerians
Algeria wants to build European interconnections to become an energy hub in the Mediterranean, even though it doesn’t really like EU liberalisation policy, write Jon Marks and James Gavin. Issue 60, March 2003.more
Anadarko scores again
Anadarko Petroleum Corporation has announced more Berkine Basin finds, from the SFSW-1 well in Block 404 north of Ourhoud, which spudded in mid-January.
Issue 60, March 2003.more
North Africa adapts to fast-changing European gas markets
A new generation of natural gas developments in Algeria, Egypt and Libya could give North Africa a leading role in Europe’s liberalised energy industry. The EU is a key market but Algeria is looking to trans-Atlantic markets as well, write James Gavin and Jon Marks. Issue 59, February 2003.more
Strong interest in Gassi Touil
Sonatrach received 11 technical bids by the late January closing deadline for the Gassi Touil liquefied natural gas (LNG) development in the southern Berkine Basin (AE 56/31). Five US players, including three majors, placed bids for the integrated project, highlighting the growing US interest in sourcing Algerian gas. Issue 59, February 2003.more
Algeria leads over-producers as Africans test OPEC
OPEC ministers meeting in Vienna on 12 December agreed to raise the cartel’s nominal 21.7m b/d output ceiling by 1.3m b/d to 23m b/d from 1 January, but given their commitment to simultaneously reining in current excess output after a period of substantial over-production, ministers said this would translate into a real production cut. Issue 58, January 2003.more
Subscriber Area
require a subscription.