Algeria through its state oil company, Sonatrach has inked a deal with ExxonMobil to develop two gas fields as part of boosting the country’s energy needs.
The sealed memorandum of understanding was inked in Algiers by Sonatrach’s chief executive Rachid Hachichi and the head of exploration at ExxonMobil, John Ardill. The agreement targets the Ahnet and Gourara basins in southern Algeria and is expected to lead to a detailed exploration and production contract if ExxonMobil finds the results satisfactory, a process that could take 12-36 months.
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Oil strategy
This development follows reports of advanced negotiations between Sonatrach, ExxonMobil, and Chevron to harness Algeria’s extensive gas reserves, including both conventional and shale gas. The recent memorandum underscores a focus on operational excellence, technological innovation, and environmental responsibility.
The deal marks a significant step in Algeria’s strategy to expand its natural gas production. As one of the largest natural gas producers in Africa, Algeria is keen to leverage its vast conventional and shale gas reserves to meet growing global demand, particularly from Europe. The European Union has been seeking alternative gas supplies following the reduction of Russian gas imports due to geopolitical tensions.
Geoff Porter, president of North Africa Risk Consulting, views this as a substantial step forward for Sonatrach. Hachichi also highlighted the agreement’s role in fostering responsible and sustainable resource exploitation, while Ardill emphasized ExxonMobil’s commitment to bringing advanced technology to the partnership.
Source link : https://pumps-africa.com/algeria-exxonmobil-seal-oil-deal/
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Publish date : 2024-05-24 03:00:00
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