Americans Search For Shale Gas Deals, Agree To Apply 51/49 Rule

Number of American energy companies that are active in the regions of Texas and Louisiana, expressed the desire to enter the Algerian market to invest in shale gas under certain conditions, Chairman of the Algerian-American Business Council, Ismail Chikhoune, said.

“Economic Rule 51/49 does not hinder those companies that remain willing to discover unconventional energies in Algeria, in light of the decline in the profits of traditional energies of oil and gas, and the beginning of the depletion of reserves”.

On the sidelines of the agreement that was signed on Wednesday morning at Algiers Aurassi Hotel, between the National Company for Metallurgical and Copper Structures and the American partner, which includes a protocol of cooperation to produce oil equipment through which the American company is committed to technology transfer and the training of Algerians in the field, Chikhoune explained: “That shale gas is a very important project for Americans who are interested today to enter the Algerian market and win deals in this fertile investment sector, but this requires first of all re-estimating Algeria’s reserves of this gas, and provide guarantees not to harm the environment and citizens, which is expected to be a catalyst for a relatively low cost”.

“US companies will accompany Algeria in the marketing of this gas also not only to extract it, but above all these companies ask for formal approval of the authorities to exploit this energy, after discussing all details of this exploration to avoid the controversy that was caused by the schist in the past years in Algeria”.

“US companies are willing to enter the Algerian market and invest in several economic sectors, thus becoming America’s gateway to the African market either through export or the establishment of large factories and branches of the largest companies, considering that the most important sectors that interest the US dealers are health, medicine and pharmaceutical industry, Oil, renewal and non traditional energies, which was included in the visit that led 30 US businessmen to Algeria, on Wednesday.

“These businessmen sat at the B2B table with Algerian businessmen from various employers’ organizations to discuss the partnership files”, Chikhoune said, adding that he expects to sign wholesale agreements during the next stage.