Algeria’s state-owned oil and gas firm Sonatrach has signed an agreement with US oil major ExxonMobil to allow the study of opportunities to develop hydrocarbon resources in Algeria’s Ahnet and Gourara basins. The signing comes after Algeria’s Hydrocarbon Law means that all oil and gas resources in Algeria are owned by the state. The move for additional hydrocarbon exploration will hopefully allow Algeria to keep up with rising demand coming from Europe.
Algeria is among the 10 biggest producers of natural gas in the world and is seeking to further develop the sector amid increased European demand. Since the Russian invasion of Ukraine in early 2022, Europe has been looking to import more gas from the North African country in an effort to reduce dependence on Moscow. The higher demand is continuing into 2024.
Late last month, Algerian Foreign Minister Ahmed Attaf told the World Economic Forum in Riyadh that Europe has asked Algiers to increase its gas supply. ‘We are asked by our partners in Europe more and more to deliver additional quantities of gas,’ he said, reported the Saudi news outlet Arab News.
