PEOPLE’S DEMOCRATIC REPUBLIC OF ALGERIA

Ministry of Energy and Mining

International Bid Round for an integrated gas and oil project

The Ministry of Energy & Mining of  Algeria and Sonatrach have  the  great  pleasure of announcing an international bid round for an integrated gas and oil project.

The Ministry of Energy & Mining and  Sonatrach, kindly  invite  Oil  &  Gas  Companies  owning GTL technology and interested  by investments in the hydrocarbon sector of Algeria to participate to this international bid round.

The project named “ TINRHERT, Integrated GTL Project ” consists of :

1. Development of wet gas and oil fields

2. Construction of a GTL plant (Gas To Liquid).

The " TINRHERT, Integrated GTL Project " includes gas and oil fields located in the Tinrhert bloc near the giant fields of ALRAR, ZARZAITINE and OHANET (60 Km North of In Amenas city, see the map). It also includes

1. UPSTREAM

1. New Development

• Development of 17 sweet wet gas fields (3.8 Mb) :

  • Gas wells drilling or recompletion of existing wells.

  • Surface facilities: pipelines and gas treatment plant (LPG and Condensate  extraction)

• Development of 7 oil reservoirs

  • Oil wells drilling

  • Surface facilities: pipelines and oil treatment centre

• Exploration of the Cambro-Ordovician reservoir within the 17 field limits :

  • Deepening development wells to explore the Cambro-Ordovician units.

b.      Mature Fields

• Exploitation of 6 oil mature fields:

  • Surface facilities to recover the flared gas

• Development of the corresponding gas-caps at the end of the oil production.

  • Gas wells drilling or recompletion of existing wells.

  • Surface facilities

2.      DOWNSTREAM

Construction of a GTL (Gas to Liquid) plant to transform the produced dry gas into liquids.

The estimated  hydrocarbon volumes for this group of  fields are as follows:

• 151  Billion cubic meters (5.3 TCF) of sweet wet gas in place; with 155 cm/MMcm and 186 cm/MMcm of average LPG and condensate yields.

• 37 million cubic meters of oil in place.

• 3 million cubic meters of remained oil to be produced from the mature fields.

• High Cambro-Ordovician exploration potential in the area.

The expected wet gas daily production rate is 12 x 106 st m³  during 15 years. Wet gas production is treated in a "field gas treatment plant" to extract condensate and LPG.

Dry gas will be sent to a GTL plant in the north of Algeria (on the sea shore). Size of the GTL plant corresponding to the Tinrhert dry gas production rate is estimated at 36 000 BPD of liquids.

The plateau period will be increased from 15 to 25 years by the development of new discoveries issued from exploration of the cambro-Ordovician reservoir within the 17 fields.

If exploration is unsuccessful, new undeveloped gas fields, in the Tinrhert area, will be added to the project to feed the GTL plant for the remaining period.

The total period of the contract is 30 years:

• 5 first years :

  • fields development

  • construction of gas treatment plant: condensate and LPG extraction.

  • construction of a GTL plant : transformation of the dry gas into liquids.

• 25 years: oil and gas production.

The Bid Round Process will involve two phases:

• The first phase covers  the technical proposal and the second phase is for the Commercial issue.

• Only companies presenting a technical proposal are admitted for the commercial bid.

First Phase

Data-room session of the project will be held from 16^th to 30^th of April 2005.

Data package of the project will be available for review by the bidders during the data-room session.

The data-room will require payment of fees.

A company profile is requested for data room participation.

The interested companies may contact benaouda.abdelhakim@sonatrach.dz for the data room registration.

At the end of the Data Room session, a period of 3 months will be allocated to the bidders for a detailed evaluation before submitting a technical proposal.

• During this period, the companies may request clarification meetings for any aspect of the project.
• Field visits may be organized on the request of the companies. Such request should be made at least 2 weeks in advance.

Technical proposal must be delivered by hand at the end of the 3 months evaluation period, in sealed envelopes, marked only with:

• "Appel d'Offres International pour le Projet Intégré GTL de Tinrhert"
• "Ne pas ouvrir"

To Mr le Directeur de la Division Petroleum Engineering & Développement SONATRACH / ACTIVITE AMONT / PED 8 Chemin du Réservoir, Hydra , Alger , ALGERIE.

The information provided by each bidder will remain confidential.

Second Phase

During the second phase, the Ministry of Energy & Mining and Sonatrach will:

• Evaluate the different proposals received from the bidders.
• Invite all the bidders to clarification meetings with sonatrach concerning their technical proposals.
• Define an optimal development project conception based on the analysis of the submitted offers.
• Invite all the bidders for a second clarification meetings concerning Sonatrach’s conception plan.
• Send the final copy of the contract to all bidders.
• The bidders will be invited to submit their commercial proposal, based on the single bidding parameter, after a period of 45 days.

The final offers including an initialled contract must be handed over in sealed envelopes, marked only with:

• "Appel d'Offres International pour le Projet Intégré GTL de Tinrhert"
• "Ne pas ouvrir"

To Mr le Directeur de la Division Petroleum Engineering & Développement SONATRACH / ACTIVITE AMONT / PED 8 Chemin du Réservoir, Hydra, Alger, ALGERIE.

Award of contract will be made on the 20^th of December 2005, during a public opening session with the presence of all bidders.

Signing of the contract: Within fifteen (15) days following the award.