Statoil, Shell to Assess Algerian Shale

Statoil and Shell were on Tuesday awarded the Timissit Permit Licence in the Illizi-Ghadames Basin onshore Algeria.

“The award represents an opportunity to test a potentially large shale resource play,” Statoil said in a statement Tuesday.

The licence is located in southeastern Algeria and covers an area of 2730 square kilometres. The Norwegian firm will be the operator with 30% equity, Shell will hold 19% equity and the remaining 51% will be held by Sonatrach.

“Statoil is entering this shale play to test the prospectivity and commerciality through a step-wise approach. The first exploration phase is expected to last up to 2017 and include the drilling of two wells and seismic acquisition,” said Nick Maden, senior vice president for Statoil's exploration activities in the Western Hemisphere.

The award is part of the Algerian Ministry of Energy and Mines, National Agency for Hydrocarbon Resources Valorisation’s (ALNAFT) Fourth International Bid Round, which was launched in January 2014.

At estimated 700 trillion cubic feet (TCF), Algeria hold world’s third largest technically recoverable shale gas reserves in its seven shale basin, according the International Energy Agency (IEA).