The other successful bidders were the UK's BP, the Anglo-Australian BHP Billitonand the UAE/US joint venture Gulf Keystone. The contracts on the blocks, which cover a total area of more than 90,000 square kilometres, call for a three-year first phase and a two-year second phase. After about 60 companies expressed interest, bids were submitted by 11 companies and 10 consortia for the 10 blocks on offer. No bids were made on the Bir Romane 414 south/443b-444 north block in the Berkine basin.

Shell, which has had no presence in Algeria since 1986, was awarded the Reggane Hirane block in the Reggane basin and the Zerafa block in the Gouara basin. At Reggane, it will drill two exploration wells and acquire 750 kilometres of 2D and 900 square kilometres of 3D seismic. On the Zerafa block it has agreed to an exploration programme consisting of two wells, 960 kilometres of 2D seismic and 540 square kilometres of 3D seismic.

The Zerafa block surrounds some of the gas fields in the In Salah gas project, the associated infrastructure of which makes nearby fields an attractive prospect. 'It is in an area where lots of companies are looking to explore and develop', says Ross Millan of the UK's Wood Mackenzie. 'Historically, the southwest zone has been considered remote, but the new pipeline is making it more attractive to international investors' (MEED 13:8:04).

Gulf Keystone has been awarded two fields: the oil-dominated Bottena block in the Southeast Constantine basin, which is crossed by the Hassi R'Mel gas pipeline to Tunisia and Europe; and the gas-dominated Hassi Ba Hamou block on the Bechar-Oued Namous basin.

On the Bottena block, the company has committed to drill one exploration well and shoot 379 kilometres of 2D seismic and 500 square kilometres of 3D seismic in the first phase of the contract. The block includes two existing Sonatrach discoveries, the Djebel Onk oil field and the Djebel Foua gas field.

Gulf Keystone's commitments on the Hassi Ba Hamou block include the drilling of two wells and the acquisition of 400 kilometres of 2D and 100 square kilometres of 3D seismic during the first phase of the contract.

BP was awarded two blocks in the Illizi basin, close to the In Amenas gas project, which it is currently developing with Norway's Statoil (MEED 11:6:04). It also won the contract to explore the Hassi Matmat block in the Oued Mya basin, 160 kilometres north of the Hassi R'Mel gas condensate field. BHP Billiton won the third contract in the Illizi field, the Oudoume block, and was also awarded the Hassi Bir Rekaiz block in the Berkine basin (MEED 30:7:04).

An announcement on the launch of the seventh international licensing round is expected later in April (MEED 8:04:05, Cover Story).