In December 2018, it was understood that Eni was formally awarded a prospecting permit for an offshore block, assumed to be called Bejaia-Skikda. An agreement for the block was originally signed on 29 October 2018. The precise location of the licence is unclear, but it may lie adjacent to, and include part of, the 32,670 sq km Offshore Bejaia prospecting permit, awarded to Sonatrach in 2017 on a two-year term. Equity in the new licence is understood to be split Eni (25% +Op), Total (25%) and Sonatrach (50%). An exploration well has already been slated (optimistically) for 2019, to follow a new 3D seismic campaign. The signature of the agreement confirms that the company has been in serious negotiations for exploring the country's offshore area. Reports in early 2017 had stated that Eni had signed a provisional deal to participate in a licence.Algeria's offshore zone remains frontier acreage, with just four wells having been drilled. In 1974, the Arzew 1 (TD 1,034 sq km) and Alger 1 (TD 1,205m) shallow-water wells were drilled. Both were P&A dry. Following the DSDP 371 well in 1975 (3,353m TD), Total drilled the Habibas 1 (HBB 1) well in 1977 in 935m WD, close to the border with Morocco. It was P&A dry, after reaching 4,496m TD. Sonatrach has been planning to drill an offshore well for a number of years, but the price tag (~US$ 100 million) and lack of offshore experience has hampered efforts to-date. Until now, Sonatrach had operated two offshore prospecting permits, Offshore Bejaia & Offshore Mostaganem, with 100% equity.<P />
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