The main source of its foreign exchange earnings, Algeria is seeking to strengthen its oil and gas production and export capacities. New exploration licenses will soon be awarded.
The cycle for awarding oil and gas licenses in Algeria is scheduled for the fourth quarter of the current year, the specialized site Boursorama reported this Tuesday, July 9, citing the Reuters agency.
A source from the Algerian Hydrocarbon Resources Development Agency confirmed to the British news agency that it will organize its next round of awarding gas and oil exploration licenses during the last quarter of 2024.
Preliminary agreements have already been signed in recent months with the world’s largest firms, such as Exxon Mobil and Chevron (United States), ENI (Italy) and Sinopec (China), recalls Reuters.
While moving towards the diversification of its economy by developing agriculture, industry, tourism, and mining in particular, Algeria is not neglecting the hydrocarbon sector.
A major investment program has been drawn up by the public authorities to develop the energy sector. In February 2022, the President of the Republic Abdelmadjid Tebboune announced the investment of nearly $40 billion in the sector over four years.
Hydrocarbons: Algeria will award new exploration licenses
A major gas producer, Algeria was in great demand after the outbreak of the war in Ukraine, in February 2022, to increase its deliveries to the countries of Southern Europe, notably Italy and France. Demand is satisfied within the limits of available production and transport capacities.
Algerian gas and oil exports experienced a decline a few years ago due to a lack of investment and a growing increase in domestic demand.
In December 2022, President Tebboune urged a doubling of national gas production, then estimated at 100 billion cubic meters per year, half of which is intended for export.
The objective is to be able to release a quantity of 100 billion cubic meters for export or double the current volume.
Double gas production in five years
Exploration is an important segment of the energy industry. It makes it possible to increase proven reserves of gas and oil.
Algeria’s proven reserves are estimated at 4.5 billion tonnes of oil equivalent (toe), or 12 billion barrels, all products combined (oil, gas, condensate, and LPG).
Algeria, which produced 105 billion cubic meters of gas (including 50 billion for export) in 2023, aims to double its production in the next five years to meet internal market demand and keep its shares for export.
Oil production is around 910,000 barrels per day. According to the Minister of Energy, Mohamed Arkab, Algeria marketed 170 million TEPs in 2023, up 3% compared to 2022.
The drop in prices on world markets nevertheless pulled revenues down, from 60 billion dollars in 2022 to 50 billion in 2023.
