Sonatrach, Algeria’s national oil company, announced the discovery of eight new hydrocarbon deposits since the beginning of 2024. These discoveries are poised to bolster Algeria’s standing in the global energy market. The country currently produces 137 billion m3 of gas annually, with plans to increase this output to 200 billion m3 over the next five years. To accelerate production and leverage its recent discoveries, Sonatrach has signed several memorandums of understanding (MoU) with international oil companies.
Power Interconnection Agreement with ENI
State-owned Sonelgaz and Sonatrach signed an MoU with ENI to study the feasibility of an electricity interconnection project between Algeria and Italy in July this year. The project involves building a submarine cable to exchange or supply electricity to the European market. The studies will assess technical, environmental, legal, economic, financial and market aspects to determine the viability of producing, transporting and commercializing renewable energy.
Hydrocarbon Exploitation Deal with Chevron
Sonatrach signed a MoU with oil supermajor Chevron in June 2024 to develop hydrocarbon resources in the Ahnet and Berkine basins, with a focus on operational efficiency, advanced technology, and sustainability. Both basins are rich in natural gas and shale.
Expanding Cooperation with Sinopec
Sonatrach and Chinese oil company Sinopec signed a MoU in June to enhance collaboration in the oil and gas sector. This agreement aims to broaden their partnership into areas such as the exploration and development of complex reservoirs, renewable energy, petrochemicals, oil engineering and skill development. Another MoU between the two companies was signed in March 2024, which paves the way for a contract concerning the Hassi Berkane Nord exploration area.
Partnership with ExxonMobil to Develop O&G Resources
Sonatrach and oil major ExxonMobil signed a MoU in May 2024 to explore and develop two gas fields in Algeria’s Ahnet and Gourara basins. Located about 600 km south of the Hassi R’mel plant, the Ahnet-Gourara basin spans 12,1260 km² and includes 17 blocks. In 2023, Sonatrach made two discoveries in the area, which include the Oued Tesa Araret-2 in the Ahnet Basin and Tinerkouk-1 in the Hassi Mouina perimeter in the Gourara Basin.
Exploring Gas Potential with Eni
Sonatrach and multinational energy company Eni signed a MoU in May 2024 to strengthen and expand their existing partnership. The MoU outlines a new research and exploitation program aimed at enhancing the hydrocarbon potential of the Zemoul El Kbar, Rourde El Louh-Sif Fatima and Rhourde Messaoud Nord areas. In March, the two companies, along with international oil company Equinor, signed another MoU to revive exploration and development activities in the In Salah and In Amenas regions.
Sonatrach, TotalEnergies
In April, Sonatrach and French supermajor TotalEnergies signed a MoU to develop and assess natural gas resources in the Timimoun Northeast region, leveraging existing processing facilities. Currently, Sonatrach and TotalEnergies operate the TFT II, TFT Sud, Timimoun and Berkine fields under joint venture agreements.
