Oil & Gas

Since the beginning of the year, Sonatrach has made eight oil discoveries in Algeria, a move that will boost the country's hydrocarbon reserves, secure its domestic needs, and increase its exports. According to the Washington-based Specialized Energy Platform, Energy and Mines Minister Mohamed Arkab announced these eight "significant" and "very important" discoveries.

Minister Arkab, during his appearance on public television on May 29, 2024, highlighted that these discoveries were made in "new locations" through the self-efforts of Sonatrach. Algeria possesses up to 159 trillion cubic feet of natural gas resources and 12.2 billion barrels of oil reserves, with daily production of about 910,000 barrels of oil and 9.9 billion cubic feet of gas.

The new oil and gas discoveries, located in Bechar, south of Ain Salah, north of Djanet, south of Illizi, and north of Ouargla, will significantly add to Algeria's hydrocarbon reserves, especially natural gas. Sonatrach, in collaboration with major international oil companies, aims to increase exploration and bring new fields online to meet the needs of its customers.

Algeria's energy sector has been revitalized following the Russian invasion of Ukraine, with the country stepping in to supply Europe during its search for alternative energy sources. Agreements with Italy, Spain, and Germany have bolstered Algeria’s role, contributing about 14% of the EU’s total gas imports via pipeline and LNG.

Minister Arkab revealed plans to raise Algeria's gas production to 200 billion cubic meters per year in the medium term, compared to the current 137 billion cubic meters. This increase aligns with President Abdelmadjid Tebboune's directive to boost exports to 100 billion cubic meters annually. Algeria aims to enhance its energy sector through partnerships, including a forthcoming agreement with Chevron, and continues to improve its investment climate as part of a broader strategy for economic development.