Wind of change in Algeria

2006-04-27T08:38:00.000-07:00

Germany to invest $2.5B in Algeria energy

ALGIERS, Algeria, April 26 (UPI) -- Germany is to invest $2.49 billion in the Algerian energy sector, Algerian radio reported Wednesday.

Guenter Gloser, minister-delegate at the German Foreign Ministry, spoke of the attempts forged by the two countries to develop bilateral relations that would then enable them to cooperate across a breadth of fields.

Although the two countries are aiming for a diversified partnership that will see them cooperating in all spheres, Gloser encouraged those in positions of responsibility to forge transnational relationships in the fields of energy, scientific research and technology.

Following talks with a range of Algerian officials, Gloser told Algeria's Radio 1: "We shall form a synopsis of the results of the talks I have had in Algeria to help us in Germany know in which field to get involved. Will it be in the industrial sphere or the enterprises?

"Naturally, Algeria is free to choose it partner. Allow me to say that I have personally felt Algeria's desire to develop its relations with Germany and my duty in this context is to promote Algeria in Germany."

Germany, Gloser said, planned to invest $2.49 billion in Algeria's energy sector by 2012, although he gave no further details of the nature of the projects that would benefit.

2006-04-24T16:48:00.000-07:00

Algerians and Russians in gas talks

TALKS in Algiers last month between Gazprom and Sonatrach, the Russian and Algerian gas giants, were overshadowed by a $7 billion (£4 billion) arms deal between the two nations.
Despite being held in the shadow of a visit by President Putin, the significance of the talks over gas was not lost on the Algerian media, which described it as the first step to the creation of a “powerful energy lobby that would force Europe to bend”. The Quotidien d’Oran, a newspaper, said that Gazprom and Sonatrach would be the “locomotives of a new Opec of gas”.

No document was signed and the companies agreed only to prepare a memorandum of understanding to be signed this month.
However, the potential power of the two companies in the emerging market for liquefied natural gas (LNG) is only now beginning to be recognised. Algeria is the second-largest natural gas exporter to Europe after Russia. In terms of gas reserves, it ranks eighth in the world, with 4.5 trillion cubic metres, a reservoir that could rise to eight trillion cubic metres with further exploration beneath the sands of the Sahara.

In production, Algeria is more important still, ranking fourth in the world in output. It occupies a strategic position, flanking Southern Europe with one pipeline, Transmed, linking Algeria to Italy’s boot, and another, Maghreb, traversing the strait of Gibraltar to penetrate the Iberian peninsula. A third pipeline is planned to link Algeria directly with the Spanish coast and it has plans to expand its capacity in the growing market for LNG.

Accepted wisdom has, in the past, viewed a gas cartel as unlikely because natural gas is a local market, fragmented by pipelines and boxed-in by long-term contracts between suppliers and consumers. However, an emerging trade in LNG cargoes in the Atlantic is beginning to change the economics of gas, creating price competition between North America and Europe. The North African state is within striking distance of the huge American gas market, which has been a recipient of regular cargoes from Sonatrach’s fleet of LNG tankers since the Seventies. The country was a pioneer in the technology of chilling gas to -160C, having shipped one of the first cargoes to Canvey Island in Britain in the Sixties.

According to Patrick Heren, publisher of the Heren Report, a gas industry journal, Sonatrach’s eastward expansion has been limited. After a conflict with Gazprom in the Balkans, Sonatrach has focused on southwestern Europe and the United States.

Gazprom is anxious to build quickly a big position selling LNG to America and Algeria’s established presence in the US market makes it a competitor or a useful ally. Pending the development of Siberian LNG exports, Gazprom is believed to be discussing LNG swap agreements with Sonatrach, under which Gazprom would deliver Algerian cargoes of LNG to US ports, helping to establish a Russian transatlantic trade. In return, Gazprom would supply fuel to Sonatrach’s European customers via pipeline.
Such deals are already in place with the delivery by Gazprom in December to Cove Point, Maryland, of a cargo of Algerian gas, originally sold to Gaz de France but flipped on to the Russian company.By Carl Mortished, International Business Editor

2006-04-23T14:12:00.000-07:00

Insulin: Inauguration of Saidal's production unit

Constantine - An insulin production unit, designed to produce three types of injectable insulin up to 5 million injectable units a year, has been inaugurated Sunday by President of the Republic Abdelaziz Bouteflika, on a working and inspection visit to the eastern province of Constantine. Entirely financed by pharmaceutical group Saidal for a total value of 1.3bn DA, a part of which in currencies estimated at �10mn, this insulin production unit, the first of the kind in Algeria, is located in the industrial park "Le Palma" (west of Constantine) within Saidal's factory over a 13,000 m2 surface. APS

2006-04-23T14:09:00.000-07:00

Record surplus of Algeria's trade balance in the first quarter
Algiers - Algeria's trade in the first quarter of 2006 showed a surplus of $ 7.22 billion, up 48 % compared with the same period of the previous year (4.88 billions), according to data given Tuesday to APS by the National Customs Information and Statistics Centre (CNIS).

2006-04-23T14:06:00.000-07:00

Two international consortiums neck and neck for landing Algiers' tramway development

Algiers-(APS) Alstom and Siemens presented Monday here ulmost identical financial bids for the construction of Algiers' tramway, it was noted during the bids opening at Algiers' Underground Enterprise (EMA). Made up of Alstom-Algeria, Alstom-France, Todini Construction General (Italy) and the private company of public works "Hadad", Alstom consortium made a 25.62bn DA bid including �213.48 million, with a 36-month realization deadline.

2006-04-23T14:05:00.000-07:00

Sonatrach: A new oil discovery in Berkine basin

Algiers (APS)- A new crude oil and condensate gas discovery was made in Berkine basin in the wake of National Oil Company Sonatrach's drilling activities in Ahm-1 well (Ait Hamouda) carried out in 405a block, the company announced on Thursday in a release. This drilling operation was of 4,500 m-depth, the same source added stressing that the tests of formation assessing the Trias Argilo-gr�seux inf�rieur (TAGI) and Tournaisien reserves' potential have given outcomes confirming '' the important potential'' of this basin.

2006-04-23T14:03:00.000-07:00

Tourism to earn Algeria $1 billion by 2015

Algiers (APS) - Tourism will earn Algeria revenues of almost $1 dollar by 2015 owing to the development strategy worked out by the ministry, Tourism Minister Noureddine Moussa considered Saturday in Algiers. "We have forecast the visit to Algeria of some 4 million tourists by 2015, which would help boost the country's revenue to reach some $1 billion," he told the Algerian television's forum.

2006-04-22T08:48:00.000-07:00

Algeria invites contractors for $16bn transport works

Algeria, rushing to modernise after years of strife, is spending $16 billion on airports, ports and roads in a project offering 'golden opportunities' for contractors, including foreigners, a minister said on Thursday.
Public Works Minister Amar Ghoul told Reuters the five-year programme was 'making up for lost time' after more than a decade in which the economy of Africa's second largest country was damaged by conflict between security forces and Islamist rebels.
We will spend more than $16 billion to close the gap as we are very behind,' Ghoul said in an interview. 'The Algerian market is fully open (for foreign suppliers) and attractive. It offers golden opportunities. This includes all activities in the public works sector from studies, design, construction, maintenance, expertise to management,' he said.

The plan is part of a $80 billion government venture started last year to spur economic growth, create jobs and restore hope to the 33 million people after years of fighting that cost an estimated 200,000 lives and caused $30 billion in damage.

Last month, Algeria committed a large chunk of the spending when it awarded contracts estimated at $7 billion to Japanese and Chinese consortiums to build parts of a 1,300-km (812 mile) highway across the country from Tunisia to Morocco.

'More international tenders will be launched. The best (bidder) will win the deals,' he said.

In addition to the east-west highway, Ghoul's 2005-2009 plan includes seven new bypasses, 25,000 km (15,600 miles) of roads, five new fishing ports and four airports.

Algeria is also contributing $260 million to a multinational venture to build a 7,000 km (4,300 mile) trans-Saharan road linking Algeria to Lagos in Nigeria.

'Algeria is pushing for better South-South exchanges. This project has a social and economic demension,' Ghoul said.

Algerian cities are often clogged by traffic due to lack of sufficient roads and the variable quality of those there are.

'Infrastructure will ease and alleviate pressure of traffic and boost economic exchanges across the country. It will also permit a better regional balance between provinces,' he said.

The government was unable to tackle the problem in the 1990s due to the reluctance of international firms to come to the country because of Islamist-linked violence.

But rebel attacks have fallen sharply in recent years, allowing foreign investors to gradually return.

'The projects are aimed at making up for lost time. We need to develop and upgrade our infrastructures. They are part of the government plan to meet growing needs and make Algeria ready for the future through modern infrastructures,' Ghoul said.

The Mediterranean nation hopes modernising the road network will strengthen economic growth and curb unemployment, officially at 13 percent but widely believed to be much higher.

Algerian businessmen complain of corruption, red tape and an obsolete banking system. Ghoul said the authorities were doing their best to improve the business climate and he pledged to ensure full transparency in dealing with investment issues.

'It's a long road ahead, but we are going in the right direction. Oil is not the economy but it helps us to build the economy. The government is making efforts to overcome banking problems. Things are improving on the ground,' he said.-TradeArabia News Service

2006-04-12T14:28:00.000-07:00

Norway's Statoil Plans to Invest $1.5 Billion More in Algerian Gas Fields

OSLO, Norway (AP) -- Norwegian oil company Statoil ASA said Wednesday it has spent about US$2 billion to develop Algerian gas fields, and plans to invest US$1.5 billion more depending on future natural gas finds in the North African country.
Future investments are contingent on gas finds in the Hassi Mouina block, an area covering 23,000 square kilometers (9,000 square miles) in western Algeria, Statoil spokesman Kai Nilsen said.
Statoil has a 75-percent share in that block, with Algeria's state-controlled Sonatrach owning the remaining 25 percent.
The Norwegian company already has a solid foothold in Algeria, after securing interests in two gas fields in the southern part of the country.
Statoil expects production to start at the In-Amenas field "within weeks," while deliveries from the In-Salah field started in 2004, company spokesman Ola Morten Aanestad said.

2006-04-12T14:24:00.000-07:00

Wood Group lands Algerian contract

The Wood Group said yesterday (11th April)that one of its divisions has been awarded a major contract to modify onshore oil and gas equipment in Algeria.
A spokeswoman for the Aberdeen-based energy services firm said its engineering and production facilities unit won a multimillion-dollar deal to service equipment for the In Amenas Project (IAP) in south-eastern Algeria.
She said it is the division's first big contract in the oil-rich North African region. The initial contract is for 18 months, with a possible two-year extension, and is expected to create more than 100 jobs in Algeria.
The IAP is run by three partners – BP, the Norwegian oil and gas company Statoil, and Sonatrach, the Algerian state oil company.
Algeria is the second-largest natural gas exporter to Europe after Russia.
The onshore IAP project is the largest wet gas project in Algeria and involves the development and production of natural gas and gas liquids from four wet gas fields in the Illizi basin in the south-eastern part of the country. Wet gas is natural gas containing significant amounts of liquifiable hydrocarbons.
The project is expected to produce around nine billion cubic metres of gas per year of wet gas and 50,000 barrels of liquids starting in 2006, sustained over the next 20 years.
Wood said it will transfer techniques developed in its North Sea projects to North Africa.
"This contract represents a strategic application of Wood Group's proven ability to deliver added value in the challenging mature fields of the North Sea to new prospects in Algeria," said John Stewart, director of Wood Group, Middle East and North Africa. "It is the group's policy, wherever possible, to use local skills and expertise, so we will be transferring North Sea knowledge into Algeria."
The Wood Group said yesterday that one of its divisions has been awarded a major contract to modify onshore oil and gas equipment in Algeria.
A spokeswoman for the Aberdeen-based energy services firm said its engineering and production facilities unit won a multimillion-dollar deal to service equipment for the In Amenas Project (IAP) in south-eastern Algeria.
She said it is the division's first big contract in the oil-rich North African region. The initial contract is for 18 months, with a possible two-year extension, and is expected to create more than 100 jobs in Algeria.
The IAP is run by three partners – BP, the Norwegian oil and gas company Statoil, and Sonatrach, the Algerian state oil company.
Algeria is the second-largest natural gas exporter to Europe after Russia.
The onshore IAP project is the largest wet gas project in Algeria and involves the development and production of natural gas and gas liquids from four wet gas fields in the Illizi basin in the south-eastern part of the country. Wet gas is natural gas containing significant amounts of liquifiable hydrocarbons.
The project is expected to produce around nine billion cubic metres of gas per year of wet gas and 50,000 barrels of liquids starting in 2006, sustained over the next 20 years.
Wood said it will transfer techniques developed in its North Sea projects to North Africa.
"This contract represents a strategic application of Wood Group's proven ability to deliver added value in the challenging mature fields of the North Sea to new prospects in Algeria," said John Stewart, director of Wood Group, Middle East and North Africa. "It is the group's policy, wherever possible, to use local skills and expertise, so we will be transferring North Sea knowledge into Algeria."
The Wood Group said yesterday that one of its divisions has been awarded a major contract to modify onshore oil and gas equipment in Algeria.
A spokeswoman for the Aberdeen-based energy services firm said its engineering and production facilities unit won a multimillion-dollar deal to service equipment for the In Amenas Project (IAP) in south-eastern Algeria.
She said it is the division's first big contract in the oil-rich North African region. The initial contract is for 18 months, with a possible two-year extension, and is expected to create more than 100 jobs in Algeria.
The IAP is run by three partners – BP, the Norwegian oil and gas company Statoil, and Sonatrach, the Algerian state oil company.
Algeria is the second-largest natural gas exporter to Europe after Russia.
The onshore IAP project is the largest wet gas project in Algeria and involves the development and production of natural gas and gas liquids from four wet gas fields in the Illizi basin in the south-eastern part of the country. Wet gas is natural gas containing significant amounts of liquifiable hydrocarbons.
The project is expected to produce around nine billion cubic metres of gas per year of wet gas and 50,000 barrels of liquids starting in 2006, sustained over the next 20 years.
Wood said it will transfer techniques developed in its North Sea projects to North Africa.
"This contract represents a strategic application of Wood Group's proven ability to deliver added value in the challenging mature fields of the North Sea to new prospects in Algeria," said John Stewart, director of Wood Group, Middle East and North

The herald.

2006-04-12T14:17:00.000-07:00

Algeria begins manufacturing bird flu drug Tamiflu

ALGIERS (AFP) - Algeria began manufacturing the bird flu drug Tamiflu under the brand name Saiflu in preparation for a possible pandemic of the disease, the Algerian news agency APS reported.
Algeria's state-owned pharmaceutical group Saidal began making the drug after signing an agreement in February with the Indian laboratory Hetero Labs Limited.

Saidal's director general Ali Aoun said the group planned to make six million boxes of the drug by the end of the year to create an emergency stockpile.
He added that the supply would "provide protection for 25 percent of the population in case of a pandemic, in line with the recommendations of the World Health Organisation".
Aoun also said an initial stock of 50,000 boxes of the drug would be made available to the country's central pharmacy arond the end of April.