Energy sector significantly boosted in 2018

APS : Saturday, 05 January 2019
ALGIERS- During 2018, the energy sector witnessed significant dynamics, reflected mainly in the amicable settlement of disputes between Sonatrach
(the largest Algerian and African oil company and the world’s 11th largest oil consortium) and its foreign partners which enabled the conclusion of many partnership agreements in the hydrocarbon and petrochemicals fields.
Sonatrach’s determination to put an end to any conflict situation helped to restore investors’ confidence.
In 2018, several partnership agreements have been clinched with oil companies such as; Total (France), Eni (Italy), Saipem (ENI subsidiary), Repsol (Spain), Cepsa (Spain), Pertamina (Indonesia), DEA Deutsche Erdoel AG (Germany) and Transneft (Russia).
Spain’s Cepsa, Sonatrach, the National Agency for the Valorization of Hydrocarbon Resources (Alnaft) has signed a $1.2 billion contract on the exploitation of Rhourde El Khrouf oil field in Ouargla, with a view to increasing crude oil and LPG production for the first time from this oil deposit.
Numerous agreements have been signed with Eni : one of them relates to the exploration and evaluation of the Algerian offshore basin potential.
A further contract has been concluded on the sale to ENI of 49% of Sonatrach’s interests in Zemelt Elarbi, Sif Fatima and Orhoud II research perimeters.
Another one on the construction of a gas pipeline linking two production units in the Berkine basin, Lajmat Bir Roud and East Menzel Lejmat, to produce over 7 million m3 of gas was inked.
Moreover, Sonatrach has signed a research and exploitation contract with Total (France) and Repso (Spain) in the Tin Foye Tabankort perimeter (Hassi Messaoud).
This contract provides for the execution of a $324 million additional programme, spanning a period of 25 years, and financed at 51% by Sonatrach, 26.6% by Total and 22.6% by Repsol.
It is projected to maintain, for six years, the Tin Foyé Tabankort field production which currently stands at more than 80,000 barrels of oil equivalent/day, i.e. 3 billion m3/year of gas, and retrieve additional reserves of hydrocarbons.
The Algerian group and Total agreed on the exploitation and the evaluation of oil potential of the Algerian offshore basin.
In addition, the two parties have signed another agreement to identify new project opportunities in the field of renewable energies.

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