17-01-09 Four energy companies signed deals with Algeria worth $ 272 mm to explore for oil and gas after winning permits under the North African country's seventh exploration and production licensing round. ENI was awarded a licence on Dec. 13 to explore in the area of Kerza while E.ON's Ruhrgas won the Rhourde Yacoub area. Russia's state-run gas giant Gazprom will explore the El Assel area of the Berkine Basin and Britain's BG Group won Guern El Guessa.
"The four companies will invest a total of $ 272 mm. It's an appreciable investment if we take into account the current (international) circumstances," said Djilali Takherist, head of the commission handling the tender, at the contract signing ceremony.

Eleven more areas did not attract bids, a problem that Algeria's Energy and Mines Minister Chakib Khelil blamed on the global economic crisis.
"It is undeniable that the very unfavourable situation on the world market was one factor that impacted relatively or often determined the final decision of some potential actors," he said at the ceremony.
Detailing the contracts, Takherist said BG would invest $ 100 mm to drill seven wells, while ENI was due to spend $ 69 mm for eight wells. E.ON will drill two wells for an investment of $ 48 mm and Gazprom $ 55 mm for three wells.

The round was the first to be held under a 2006 law that gives Algerian state energy conglomerate Sonatrach a mandatory minimum 51 % share in every oil and gas exploration contract awarded to foreign companies.
The main foreign companies involved in exploration and production of hydrocarbons in Algeria are BP, Amerada Hess, Statoil, Anadarko Petroleum, Repsol and Total.