ExxonMobil has signed a deal with Sonatrach to develop two major gas fields in Ahnet and Gourara basins in southern Algeria
Signed by Sonatrach’s chief executive Rachid Hachichi and ExxonMobil’s head of exploration John Ardill, the deal highlights technological advancements and sustainability.
Already a key exporter to Europe, Algeria has upped its game to widen reach in the international gas market.
It is extensively collaborating with international oil companies, and continuously looking at ways to boost production. In a latest development, Sonatrach onboarded energy tech company Baker Hughes to stimulate production from the country's largest gas field, Hassi R’ Mel.
In line with its US$50bn oil and gas investment plan that extends till 2027, Sonatrach recently initiated phase two of the southwest gas project, launching three key fields – Hassi Ba Hamou, Hassi Tidjerane, and Tinerkouk.
Hydrocarbon Law drawing oil majors
Post introduction of the Hydrocarbon Law in 2019, Algeria has been showered with exceptional gas yeild which broke all records last year at 136 bn cu/m. Natural gas contributed two-thirds of its total oil equivalent production.
The flexible fiscal terms of the Hydrocarbon Law drew majors such as Chevron, Pertamina and TotalEnergies to name a few.
While Chevron is eyeing Algeria’s gas-rich Ahnet, Gourara and Berkine basins, Pertamina anticipates drilling 12 oil wells in Block 405a. The Indonesian company has plans to invest over US$800mn in the Menzel Lejmat Nord block.
Last year, TotalEnergies signed an MoU with Sonatrach to develop gas resources in the North-East Timimoun region.
Algeria ups game to influence global gas market
Already a key exporter to Europe, Algeria has upped its game to widen reach in the international gas market. (Image source: Adobe Stock)
