Algiers drops oil production target

15 November 2007

Energy Minister Chakib Khelil has admitted that Algeria is unlikely to meet its target of increasing oil production to 2 million barrels a day (b/d) by 2010, from its current 1.5 million b/d.

“Oil is probably going to stabilise,” Khelil told Reuters on the sidelines of the World Energy Congress in Rome. “It’s taking us longer. It’s more expensive. It’s very difficult to find serious companies. Some of our projects have been delayed, some cancelled.”
Khelil stood by the country’s aim to increase gas production from about 62 billion cubic metres a year (bcm/y) in 2006, to 85 bcm/y by 2010, despite delays in developing its export infrastructure.
Among the gas export projects whose delivery dates have slipped are the 8 billion-cubic-metre-a-year Galsi pipeline to Italy and the 4.5 million tonne-a-year Gassi Touil integrated liquefied natural gas project (MEED 5:10:07).
The country’s next international oil and gas licensing round will be launched in January. It is expected to offer 10-15 blocks of largely gas-prone acreage.
Bidders will be expected to conform to strict prequalification criteria, including technological expertise and having overseas acreage (MEED 2:11:07).

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