Algeria Postpones Oil Bids to Sept. 30

25 Aug 2014   Algeria

Algeria has delayed the deadline for its next oil-licence bids by about four weeks, people familiar with the matter said, as companies complain about investment conditions despite recent oil-sector reform. The date set for the submissions to the tender for oil and gas blocks has been reset to Sept. 30 from Sept. 4 previously, people familiar with the matter said. The development comes despite a new Algerian law—passed last year—that improves revenue sharing for companies that invest in difficult blocks, such as the country’s sizable natural-gas shale resources. One main concern for bidders is a clause that allows national oil company Sonatrach to make investment decisions without consulting its foreign partners, according to people at international companies involved in the licensing round. But an Algerian official said the delay was due to the need to handle “numerous applications” for the licensing round. At previous bidding rounds, Algeria has struggled […]

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