Arkab: “Algeria Has Exhausted Around 60 % Of Its Reserves In Hydrocarbons”

Energy Minister Mohamed Arkab said on Tuesday in Algiers that nearly 60% of the initial hydrocarbon reserves were exhausted, due to the increase in local consumption and exports.

“There are several factors that require us to adapt the Hydrocarbons Act to international standards,” said the Minister, when presenting the draft law governing hydrocarbon activities to the Commission on Economic Affairs, Development, Industry, Trade and Planning at the National People’s Assembly (APN), in the presence of the Minister of Relations with Parliament, Fethi Khouil.

In this regard, Mr. Arkab cited the considerable increase in domestic demand for gas and petroleum products, explaining that this hike has exceeded 7% annually, a high rate compared to those recorded at the global level.

According to the Minister, this situation will inevitably lead to “a structural deficit by 2025-2030 between supply and demand on the domestic market”, adding that “this situation will certainly impact our commitments to foreign customers with regard to gas export contracts, the main ones being renewed in 2019 and 2020”.

Based on this observation, the Energy Minister further stated that the draft law governing hydrocarbon activities aims to improve investment conditions, both legally and fiscally, in order to “encourage and bolster the partnership aimed at intensifying exploration efforts and increasing the country’s reserves in order to ensure long-term energy security and the resources necessary for national socio-economic growth”.