ALGERIA - Other Foreign Operators.

Sonatrach has granted exploration permits to and signed PSA with a number of other companies.

First Calgary Petroleum on June 25, 2000 signed a contract with Sonatrach to explore Berkine Block 406a. Work is to be in two phases over five years and FCP is to spend $31m. It was first to acquire 200 km of 2D and 100 km of 3D seismic and drill two wells. From mid-2003 it should drill another two exploration wells and obtain a further 50 km of 2D seismic. Potential recoverable oil reserves on the block are estimated at up to 800m barrels. FCP was also negotiating a second block with Sonatrach, having first come to North Africa in 1997 when it farmed into the South Nefta acreage in neighbouring Tunisia. On April 16, 2000, Amerada Hess of the US signed two contracts with Sonatrach. One is a PSA for a 25-year EOR operation on the Zotti, El Gassi and El Agreb oilfields in which it is to spend $550m, with their recovery rate to be raised from 20 to 30% and output to rise to 45,000 b/d by 2003, with Sonatrach to retain a 51% share of production. The second is to explore Block 401c in Rhourde Errouni for five years and spend 428.5m, with four wells to be drilled.

Phillips Petroleum of the US came to Algeria in late 1996 and got the Bordj Messouda area, Blocks 406b and 209 in the Ghadames Basin. In May 1997 it sold 30% to Union Texas Petroleum and retained 70%. Sakatchewan Oil and Gas (Saskoil) of Canada has focused on Block 427a, south of Hassi Messaoud, which it got in late 1992. Its partners are Canadian Ranger Oil, Hardy Oil and Gas of the UK, and Oryx Energy of the US. Oryx on Jan. 14, 1998 signed an E&P deal with Sonatrach for 7,570 sq km in Blocks 210 and 235 in the Timissit region, 500 km south of Hassi Messaoud. It was to spend $28.8m over five years. A South Korean group led by state-owned Petroleum Development Corp. (Pedco) on Nov. 15, 1994 got blocks 230 and 231 in the Illizi basin, where it was to do 700 km of seismic studies and drill wells, spending $22m on exploration. Pedco holds 40%, Daewoo Corp. (40%), Samsung (10%) and Hanbo Corp. (10%).

British Gas in early 1994 farmed into four blocks held by Agip: the 6,800 sq km Zotti Ouest; and a 13,000 sq km tract comprising Blocks 320, 323a and 430a - at Hamadat El Atchave. This was BG's first entry into Algeria. The company has developed Tunisia's largest gas field and is active in Egypt.