Four Oil Majors Interested in Agreement with Algerian Sonatrach

Four Oil Majors Interested in Agreement with Algerian Sonatrach

Anadarko, Total, Eni, and Statoil are interested in joining the Algerian state oil company Sonatrach to develop offshore drilling in the North African country, Reuters reported.

Sonatrach has launched seismic studies near the costal cities of Oran and Bejia to evaluate the hydrocarbon potential and plan offshore drilling projects, Snoatrach CEO, Abdelmoumen Ould Kaddour, said.

In an attempt to make Algeria more attractive to investors, the government has been drafting amendments to the energy law, adding more investment incentives. The country’s current stringent terms and bureaucracy has dissuaded foreign investment.

“We will remove all obstacles, wage a battle against bureaucracy and change tax procedures,” Energy Minister, Mustapha Guitouni, stated. “The amendment is required by our energy security,” he continued. “The current system must change. We will intensify consultations with our partners.”

Growing domestic consumption has decreased energy exports, the main source of the state budget. In an attempt to reverse the fall, the amendments to the current energy law are a response to this decline.

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