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Sonatrach Partners with Saudis for Gas Fields in Illizi

The Algerian oil company Sonatrach, a key player in North African energy, is gearing up to enhance its international cooperation. During a recent meeting between Rachid Hachichi, CEO of Sonatrach, and his counterpart from Midad Energy-North Africa, Sheikh Abdulilah bin Mohammed bin Abdullah Al-Aiban, the groundwork for a new strategic partnership was laid. This agreement, set to be signed in the first half of 2024, will focus on the evaluation and development of gas fields in the South Illizi region.

According to a statement from Sonatrach published on its website, the project is part of a memorandum of understanding signed on March 4, 2024, between the two companies. The primary goal is to efficiently exploit the gas resources in South Illizi using a fast and optimized model.

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This initiative reflects the commitment of both parties to develop robust partnerships in the hydrocarbon sector while exploring other opportunities across the oil and gas value chain. Beyond extraction, this deal aims to enhance the technical and operational capabilities of both parties in a region strategically important for Algeria.

Growing Ambitions for Gas Exports

This partnership fits into Algeria’s broader vision to significantly increase its natural gas production in the coming years. According to Energy Minister Mohamed Arkab, Algeria plans to increase its annual production to 200 billion cubic meters within five years, up from the current 137 billion cubic meters. Half of this production will be dedicated to exports, aiming to meet the growing demand in Europe while also addressing domestic needs.

This ambition is backed by major investments in gas infrastructure involving Sonatrach, including the “Boosting Hassi Rโ€™Mel” project, which aims to extend the life of existing fields. Recent agreements with international players like Exxon Mobil also reflect a strategy of openness aimed at attracting capital and expertise to support this expansion.

Algeria Becomes a Strategic Player for Europe with Sonatrach

In a context of geopolitical tensions and diversification of energy supplies, Algeria has become a dominant player in the European market. By October 2024, it had become the EU’s leading gas supplier, surpassing Russia. Thanks to its two main pipelines, Medgaz and Transmed, and an ambitious investment program, Algeria strengthens its position as a reliable partner for Europe’s energy security.

By consolidating its international alliances and optimizing its resources, Algeria asserts its ambition to become a global leader in natural gas, addressing the energy challenges of the 21st century.

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