On Thursday, the Algerian state oil company, Sonatrach, signed a principles agreement with the American energy giant ExxonMobil to develop the resources available in two oil and crude fields in the south of the country.
The signing ceremony took place at Sonatrach’s headquarters in Algiers, in the presence of the company’s CEO, Rachid Hachichi, and John Ardell, the vice president in charge of exploration and new opportunities for ExxonMobil.
The agreement allows studying opportunities for developing oil and gas resources in both the Ahnat Basin (southeast) and the Qurara Basin (southwest).
Speaking to reporters, the CEO of Sonatrach stressed that the company is happy to achieve this step in the field of cooperation with ExxonMobil, which is considered a leader in the energy sector.
He added that the agreement would open new horizons for the development of the Algerian mining sector, as well as “attesting to the common will of the two companies, with the aim of establishing responsible and sustainable exploitation of our country’s natural resources.”
For his part, Ardil told reporters that the signing of the agreement lays the foundation and the correct framework for a partnership to unleash the resource potential of Algeria.
According to Ardell, Exxon is keen to transfer its experience to Algeria, in addition to the advanced technologies that have enhanced its success in the energy field.
He added, “We see great potential in the resources in Algeria, and the signing of the memorandum of understanding today is an important first step towards exploiting these resources and achieving greater economic growth for the Algerian people.”
Algeria, a member of OPEC, produces one million barrels per day of crude oil, at a time when its economy suffers from excessive dependence on oil and gas revenues, as they represent approximately 90% of its foreign exchange revenues.
Algeria seeks to attract more foreign investments to the hydrocarbons sector, and says that the hydrocarbons law adopted in 2019 includes significant incentives and facilities for foreign companies.
The International Energy Agency classifies Algeria as having the third largest global reserve of shale gas (schist), with proven reserves exceeding 20 thousand billion cubic metres.
