Algeria’s new law has altered the investment environment to attract international oil companies, by reducing taxes significantly, while also removing customs duties and taxes on most imported E&P equipment.
“We are not only looking to offer exploration assets, but going beyond that and offering asset development on mature assets”, according to Fethi Arabi. Vice-President, Business Development & Marketing at Sonatrach, the Algerian state hydrocarbon company. “We have exploration in different areas, in the frontier zone of offshore areas, while also looking to develop some areas in the north of the country and we have over 100 discoveries that remain undeveloped,” he said.
Arabi said at a Pan African energy summit that Algeria’s new reformed law provides VAT exemptions for professional activities in the oil and gas sector.
He explained that Sonatrach was now actively engaged in partnerships and discussions with over 20 oil and gas companies, resulting in significant contracts. The French major TOTAL and the Italian explorer ENI are two large European companies who have put Algerian operations high on their strategy list in the past 10 months. TOTAL’s latest quarterly report the 3rd Quarter 2023 report, lists “partnership with Sonatrach to increase the production of Tin Fouye Tabankort fields”, as a prominent highlight of its muti-energy strategy As high on the list is TOTAL’s plan to “extend to 2024, 2MMTPA of LNG deliveries in France and develop renewable energy projects in Algeria
“These collaborations are set to mobilize nearly $6Billion, enhancing the quality of crude oil, condensate, LPG and natural gas, while also extending the life of existing deposits, leading to an estimated additional production of almost 1Billion barrels of oil equivalent,” Arabi explained.