In December 2018, it was understood that Total was formally awarded a prospecting permit for an offshore block, assumed to be called Mostaganem. 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 20,814 sq km Offshore Mostaganem prospecting permit. The licence was originally awarded to Sonatrach in 2017, on a two-year term. Equity in the new Mostaganem block is understood to be split Total (25% +Op), Eni (25%) and Sonatrach (50%). An exploration well has already been slated (optimistically) for 2019, following a 3D seismic campaign.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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