Hydrocarbons: “Signing of 5 major contracts worth over $600 million USD”
On Monday, the Minister of Energy, Mines, and Renewable Energies, Mr. Mohamed Arkab, oversaw the signing ceremony of 5 hydrocarbon contracts with foreign partners, with a total investment value of no less than $606 million USD, for a period extending up to 30 years.
According to a statement from the supervising ministry, these contracts are part of the results of the “Algeria Bid Round 2024,” which is the first international competition organized under the new Hydrocarbons Law No. 19-13.
This round resulted in the awarding of 5 out of six proposed blocks for contracts extending over 30 years, including 7 years dedicated to exploration work, with a minimum total investment estimated at $606 million USD.
A “participation” contract was signed between Sonatrach and the alliance of Swiss company “Philada” and Austrian company “ZenGas,” concerning the “Toual 2” block (Berkine Basin) in the southern wilayas or provinces of Ouargla and Illizi.
Sonatrach also signed a “participation” contract with the Chinese company “Sinopec,” concerning the “Gourn El Goussa 2” block (Gourara-Timimoun Basin) in the southern provinces of Bechar, Beni Abbes, El Bayadh, and Timimoun.
The third contract was in the form of “production sharing” between Sonatrach and the alliance of the Italian consortium “Eni” and the Thai “PTTEP,” concerning the “Reggane 2” block in Adrar wilaya.
A “production sharing” contract was also signed between Sonatrach and the Chinese company “ZPEC,” concerning the “Zarafa 2” block (Ahnet-Gourara Basin) in the wilayas of Adrar and In Salah.
The fifth contract was signed in the form of production sharing between Sonatrach and the alliance of “Qatar Energy” and “TotalEnergies,” concerning the “Ahara” site in southern Illizi province.
The same source confirmed that these results reflect the attractiveness of the new investment climate in Algeria, supported by a modern and flexible legal framework, and a clear strategy aimed at strengthening value-added partnerships, especially in the fields of exploration and the valorization of national hydrocarbon resources.
The statement indicated that through this step, Algeria reaffirms its commitment to supporting sustainable investments in the energy sector, thereby enhancing its contribution to economic development and consolidating its position as a reliable and promising destination in the field of hydrocarbons at the international level.
