Oil & Gas
ALGERIA’S state-owned energy company Sonatrach has joined the African Energy Week, AEW,: Invest in African Energy 2024 conference – taking place November 4–8 in Cape Town. Sonatrach CEO Rachid Hachichi will lead a delegation to the event.
The delegation aims to catalyze collaboration and engagement with key stakeholders across Africa’s energy sector towards a common goal of increasing oil and gas production and alleviating energy poverty.The state-owned company signed a Memorandum of Understanding, MoU, with Chinese conglomerate Sinopec in March 2024, aimed at expanding cooperation in hydrocarbon exploration.
The MoU acts as a detailed framework, precisely delineating the terms of collaboration, with a particular emphasis on finalizing a contractual agreement regarding the exploration area of Hassi Berkane Nord. Building on this momentum, Sonatrach will leverage the AEW: Invest in African Energy platform to facilitate further deal signings and collaboration within the energy sector, reaffirming its commitment to growth and innovation in Algeria’s energy landscape.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.Sonatrach has been making great strides towards expanding the Algerian energy market.
Focusing on exports, the company forged closer energy ties with Europe through a medium-term contract with VNG Handel & Vertrieb GmbH, VNG, in February 2024 to supply pipeline natural gas to Germany. The agreement, finalized during a recent visit by a German delegation to Algeria, signifies a pivotal moment in Algeria-Germany energy relations.
The company also extended contracts with Turkey for the continued supply of 4.4 billion cubic meters of Liquefied Natural Gas, LNG, until 2027.Meanwhile, Sonatrach, in partnership with TotalEnergies through TFT Group, signed a contract with Entreprise Nationale de Grands Travaux Pétroliers, ENGTP, in October 2023 to expand the TFTII oil and gas pipeline. ENGTP will conduct engineering studies, procure materials, and construct the pipeline to connect eleven new gas wells in the TFT field to an existing facility. The project aims to increase gas production by nine million cubic meters per day within 24 months.The company has also extended its activities in Libya by resuming exploration efforts through strategic agreements with the Libyan National Oil Company.
Recently, Sonatrach signed two amendments to the existing Exploration and Production Sharing Agreement, EPSA, in November 2023 for Area 95/96 and Area 65 in the Ghadames Basin. The deal includes an extension of the EPSA, allowing Sonatrach to make up for several years of shutdown and resume exploration activities in the designated areas.
This proactive move highlights Sonatrach’s commitment to fulfilling its contractual obligations and maximizing the potential of Libya’s hydrocarbon resources.Committed to decarbonization, Sonatrach partnered with independent oil and gas company Wintershall Dea to develop natural gas and low-carbon projects in Algeria. Under the agreement, the companies will collaborate on innovative approaches for joint projects in low-carbon energies such as green hydrogen and carbon capture technologies.
This strategic partnership highlights Sonatrach’s commitment to leveraging Algeria’s natural gas resources to drive sustainable energy solutions, particularly in supplying natural gas to North Africa, the Middle East, and Europe.“Sonatrach’s strategic partnerships, innovative projects, and proactive approach to exploration and production are key in driving sustainable development across the continent. With vast reserves of natural gas and oil, Algeria supplies vital resources to Europe, Africa, and beyond.
Sonatrach’s commitment to decarbonization aligns with global efforts, while its focus on expanding upstream downstream infrastructure enhances Algeria’s energy sector,” says NJ Ayuk Executive Chairman of the African Energy Chamber. As the nation expands its downstream infrastructure and explores new avenues for exploration and production, AEW: Invest in African Energy will serve as a platform for showcasing these advancements, facilitating collaboration, and exploring further opportunities for growth and development within Africa’s energy sector. For additional details on participation.
Distributed by APO Group on behalf of African Energy Chamber.
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-March 14, 2024 @ 14:22 GMT|
Tags: Rachid Hachichi Sonatrach
