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BG Group holds interests in, and is operator of, the Hassi Ba Hamou (HBH) permit and the Guern el Guessa (GEG) permit.
E&P
BG Group entered Algeria through an agreement with Gulf Keystone in 2006 to acquire a 36.75% interest in the HBH permit (originally Blocks 317b, 322b3, 347b, 348 and 349b). Gulf Keystone retained 38.25% and Sonatrach, the Algerian national oil and gas company, holds the remaining 25%. The permit, in central Algeria, originally covered 18 380 square kilometres and contains the HBH gas discovery. BG Group has drilled a total of nine wells in the HBH permit to date. In 2009, the partners entered the two-year second exploration period and relinquished 30% of the original block area. Since entering this second phase, the RM-1 discovery has been appraised. At the end of the second exploration phase, another relinquishment was made, reducing the size of the permit to 2 359 square kilometres. In 2010, the partners entered into an exploration extension period running to September 2012. BG Group and Gulf Keystone have reached agreement for Gulf Keystone’s withdrawal from the HBH permit, subject to the approval of the Algerian authorities.
BG Group holds 49%, and is operator of, the GEG permit (Blocks 316a and 317a) which became effective in May 2009. Sonatrach holds a 51% interest that is carried through the exploration phase. An extensive 2D and 3D seismic exploration programme was completed in 2010. In 2011, BG Group drilled two wells in the permit.