This gradual decline is because the majority of the country’s production stems from mature wells, which continue to age rapidly. Most of these projects are in the south, near the cities of Hassi Messaoud and Hassi R’Mel.ĭespite its substantial reserves, Algerian production levels of oil have been declining for the past decade. Altogether, these efforts currently result in the production of 50 million tons of oil equivalent feet per year. Of the major projects underway, ten are in oil and gas projects, 11 are gas/gas-condensate/tight gas projects, and ten are oil projects. 3 in upgrade/enhanced oil recovery stage.In partnership with Sonatrach, Algeria’s National Oil Company (NOC), International Oil Companies (IOCs), and service companies are currently involved in more than 30 major projects in Algeria at different stages. All proven oil reserves lie onshore, and there is an interest in developing offshore capacity. For oil, Algeria ranks 16th in proven oil reserves and is among the top three oil producers in Africa. For natural gas, Algeria has the tenth-largest reserves of in the world, is the leading natural gas producer in Africa, and is the sixth-largest overall gas exporter.
It has substantial oil and gas reserves and is an OPEC member. It is also aiming to increase the production rate of existing fields and optimize well performance by 2022 and deploy relevant enhanced oil recovery technologies.īy landmass, Algeria is the largest country in Africa and the Arab World. For the hydrocarbon exploration and production segment, Sonatrach is planning to double the annual output of discoveries. Perhaps most importantly, it reintroduces the system of production sharing.Īlongside the drafting of the new hydrocarbons law, in 2018, Sonatrach unveiled a new vision and strategy, the SH2030, which lays down ambitious objectives. It also clarifies the roles of various regulatory bodies (e.g., the Minister of Energy, Sonatrach, the National Agency for the Valuation of Hydrocarbons Resources, and the Hydrocarbon Regulatory Authority. Firstly, it reduces taxes paid by Sonatrach and its partners by over 20 percent, from 85 percent to 60-65 percent. Algeria’s new Hydrocarbons Law includes multiple measures to stimulate investment in Algeria’s oil and gas sector. The other path, marked by inertia and institutional resistance to change, leads to oil and gas production levels in ten years that will be half of today’s production levels.Īfter two decades of autocracy, Algeria’s recent passage of a New Hydrocarbons Law seems to indicate that the country may choose the path of partnership by profoundly changing its tax and investment laws in the hydrocarbons sector to re-attract international oil companies. One path to the future includes undertaking new oil and gas projects in partnership with international companies (large and small) to revitalize production. Today’s conjoined global health and economic crises, coupled with persistent declining production levels, have therefore placed Algeria’s oil and gas industry, and the country, at a critical juncture where it requires ample foreign investment and effective technology transfer. Because Algeria has not meaningfully diversified its economy since 2014, oil and gas production is even more essential than ever before to the government’s revenue base and political stability. Unfortunately, the collapse in oil prices beginning in 2014 and the transition to spot market pricing for natural gas over the last three years revealed the weaknesses of this economic model. Oil and gas have long been the backbone of the Algerian economy thanks to its vast oil and gas reserves, favorable geology, and new opportunities for both conventional and unconventional discovery/production. Economic Development Organizations (EDO).Foreign Direct Investment Attraction Events.Facing a Foreign Trade AD/CVD or Safeguard Investigation?.
0 kommentar(er)
