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Algerian peace at hand as BP starts project

Sept. 16, 1996

Algeria plans a conference aimed at ending the country's civil strife, a welcome sign to petroleum companies and employees that have been targets of violence there in recent years. Meanwhile, BP Exploration Operating Co. Ltd. soon will begin exploration work ahead of a major gas development in southern Algeria, away from the violence in the north. Algeria's government and most legal opposition parties were reportedly preparing to meet in Algiers during Sept. 14-15 with a view to

Algeria plans a conference aimed at ending the country's civil strife, a welcome sign to petroleum companies and employees that have been targets of violence there in recent years.

Meanwhile, BP Exploration Operating Co. Ltd. soon will begin exploration work ahead of a major gas development in southern Algeria, away from the violence in the north.

Algeria's government and most legal opposition parties were reportedly preparing to meet in Algiers during Sept. 14-15 with a view to agreeing to a rejection of violence and a ban on using Islamic fundamentalism as a lever to attaining power.

Algeria's army canceled elections in 1991, and since then government forces and Islamic fundamentalist groups essentially have been at war.

Some of the fundamentalist groups were not invited to the weekend conference, but it follows months of negotiation between government and opposition parties with a view to ending the fighting.

The civil violence is mostly confined to northern Algeria, particularly around Algiers. The country's oil and gas hub is Hassi Messaoud about 600 km southeast of the capital.

BP's In Salah license area lies 1,200 km south of Algiers. The company is currently completing construction of offices at Hassi Messaoud, near the offices of partner Sonatrach, and one at In Salah.

"There are lots of expats already in the Hassi Messaoud area," a BP official said, "and there have been no problems reported there or at In Salah." BP has an office in Algiers, used mainly for meetings.

BP and Sonatrach plan to begin acquiring seismic data on the In Salah block soon and expect the program to take 2-21/2 years. BP has committed to drilling nine wells, with the first to spud next year.

BP and Sonatrach concluded the In Salah development deal late last year (OGJ, Dec. 25, 1995, p. 26). The $3.5 billion plan is Algeria's first major agreement with a foreign major in many years and is expected to lead to exports of 350 bcf/year of gas to southern Europe early next century.