With substantial potential for new hydrocarbon discoveries, Algeria remains steadfast in its pursuit to advance productive investments into the country, which aims to meet the energy demands of both national and international markets.
Firmly believing in the enduring significance of hydrocarbons in the global energy landscape by 2050, state-owned oil company Sonatrach VP for business development and marketing Fethi Arabi highlighted that Europe remained a natural gas market for Algeria.
“Our country is well-positioned to cater to Europe’s demands, standing out as one of their largest gas suppliers. Our strategic advantage lies in our robust infrastructure, flexibility, competitive pricing and abundant hydrocarbon resources, both conventional and complex, making Algeria a reliable and secure long-term supplier,” Arabi noted during a panel discussion during African Energy Week, in Cape Town.
Aiming to demystify legislation introduced in January 2020, Lounes Adour Director of Promotion and Valuation of Hydrocarbons Mining Field ALNAFT gave insights into how the new Hydrocarbons Law addressed critical deficiencies.
The new law alters Algeria’s foreign investment environment in the oil and gas sector to attract international oil companies, with the government of Algeria reducing taxes significantly, while also removing customs duties and taxes on most imported E&P equipment. In addition, the reformed law provides VAT exemptions for professional activities in the sector.
“We are not only looking to offer exploration assets, but going beyond that and offering asset development on mature assets. We have exploration in different areas, in the frontier zone of offshore areas, while also looking to develop some areas in the north of the country and we have over 100 discoveries that remain undeveloped,” he said.
Meanwhile, Arabi noted that Sonatrach was now actively engaged in partnerships and discussions with over 20 oil and gas companies, resulting in significant contracts.
“These collaborations are set to mobilize nearly $6 billion, enhancing the quality of crude oil, condensate, LPG and natural gas, while also extending the life of existing deposits, leading to an estimated additional production of almost 1 billion barrels of oil equivalent,” he said.
In the medium term, Sonatrach aims to boost its natural gas production for both national and international markets. The company has already made substantial efforts to meet market demands, ensuring the supply of additional quantities of natural gas and fulfilling contractual obligations to foreign clients.
Speaking from the industry’s perspective, Eni Algeria MD and country manager Alessandro Tiani noted that the company’s strategy was to move towards more production and to continue exploring. “Algeria is a favorable investment destination, because there is export capacity and significant potential to grow,” he said.
#AEW2023 – organized by the African Energy Chamber takes place this week in Cape Town under a mandate to make energy poverty history by 2030. Keep following www.AECWeek.com for information and updates about Africa’s premier energy event.
Distributed by APO Group on behalf of African Energy Chamber.