Sonatrach set to drill for oil in 20 fields across 13 provinces of Algeria

The President of the Republic, Abdelaziz Bouteflika, has endorsed a decree on research contracts for hydrocarbons and their exploitation concluded between the National Agency for hydrocarbons’ valorization and Sonatrach energy group initialed last May 20th for the purpose of prospecting for new oil fields and their future exploitation across 13 provinces of Algeria.

The move comes against a backdrop of a national economic downturn brought about by a drastic slump in world oil prices.

This has prompted a stiff decline in state earnings in hard currency over the past year mostly accrued from Algeria’s oil and gas exports.

The price of a barrel of oil on the international market has woefully come down below the $ 50 threshold.

The presidential decree, published in the latest issue of the Official Gazette, stated that the projected oil drilling operations which will span not less than 20 fields are slated to be conducted in 13 provinces of the country including Illizi, Adrar as well as El Bayadh, Laghouat, Ghardaia, Naâma, Béchar, Mascara, Tiaret Relizane, El Oued and Tamanrasset.

Furthermore, President Abdellaziz Bouteflika signed a second decree in which he endorsed Supplement No. 3 to the contract dated September 26, 2004 on the search for hydrocarbons and their exploitation in the so-called “Aserine” perimeter in the  blocs 228 and 229 A in southern Algeria.

The relevant binding document was inked last July between Sonatrach and Company “Petroceltic International”, and between Petroceltic Ain Tsila Limited and ENEL SPA.

Meanwhile, Sonatrach’s CEO Mr Mazouzi said in Algiers that the national hydrocarbon company seeks to maintain its long-term investments by giving the priority to the most profitable projects. 

“SONATRACH has to prepare for the economic recovery by maintaining its investment efforts in the major strategic and structuring long-term projects,” he said.

According to Mr Mazouzi, despite the sharp decline of oil prices, SONATRACH will carry out to completion all investment projects of national interest in the fields of oil and gas exploration and exploitation, refining, liquefaction and pipeline transport.

In this connection, he underlined that “the priority will be given to the most profitable projects in all investment decisions, especially owing to the global economic situation marked by the dropping oil prices.”

Mr Mazouzi further waxed rather optimistic about the recovery, adding that the oil demand will probably hike again to meet the growing needs of the world population