Algerian government wants the sale of BP's Algeria assets to be dealt with by Sonatrach
Reviving previously agreed gas deal between Gazprom and Algeria’s oil and gas producing group Sonatrach, the Russian gas monopoly will be bidding on gas exploration in Algeria and agreed with Sonatrach to consider swap operations. Gazprom says it has a “common understandng†with Algeria about the situation on the gas market.
- Gazprom is exploring the El Assel field with Sonatrach after winning rights to the area in 2008. The field is the only joint project so far since the two companies signed a memorandum of understanding in 2006.
Algeria isn’t supplying gas to spot markets and doesn’t favor renegotiating long-term supply contracts to add spot pricing. Algeria also said it is considering a request from ‘British Petroleum’ to approve the sale of its Algerian assets to TNK-BP, BP’s Russian joint venture, according to authorized sources.
- For Russia’s part, Russian Energy Minister Sergei Shmatko in the Algerian capital with Medvedev during his recent official visit here said that Sonatrach and Russia’s TNK-BP are both interested in BP’s Algerian assets, and TNK-BP could offer the Algerian state oil company a swap to obtain them.
- TNK-BP Deputy CEO Maxim Barsky, also in Algeria with the presidential delegation, said Prime Minister Vladimir Putin had sent a letter to his Algerian counterpart Ahmed Ouyahia asking him to approve the sale of BP’s Algeria assets to the Russian oil firm.
- Among BP’s assets in Algeria are two large gas developments, In Salah and In Amenas, operated jointly with Norway’s StatoilHydro and Sonatrach, with average annual output of gas totaling 18 billion cubic meters.
- Barsky said BP’s gas assets were worth up to $3 billion and his company would be able to finance an outright purchase. BP owns the other half of TNK-BP. TNK-BP has also decided to make the British firm an offer for its Venezuelan and Vietnamese assets.