Algeria Plans Shale Gas Production by 2022

Algeria plans to begin shale gas production by 2022, according to interim CEO of Sonatrach, Said Sahnoune.

"Algeria may start producing shale gas in 2022, if the drawn plan would be executed under the right conditions,” Sahnoune told reporters on Sunday in Oran, reported Algeria Press Service.

He was speaking on the sidelines of the International Conference on Gas industry in Algeria.

"By 2025, we could also achieve a production level of about 10 billion cubic meter of shale gas," Sahnoune added.

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

The North African nation is encouraging foreign energy firms to invest and exploit local shale gas resources.  

Last month, Statoil and Shell said they would test shale potential at Timissit Permit Licence in the Illizi-Ghadames Basin onshore Algeria.

The award was 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.

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

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.

The first exploration phase is expected to last up to 2017 and include the drilling of two wells and seismic acquisition, Statoil said.