SONATRACH and ExxonMobil Forge Partnership to Develop Algeria's Oil and Gas Resources

SONATRACH, Algeria's state-owned oil company, and ExxonMobil have signed a Memorandum of Understanding (MoU) to develop oil and gas resources in the Ahnet and Gourara basins. This partnership aims to achieve operational excellence, technological innovation, and sustainability while respecting the environment.

The agreement, signed on May 23, 2024, at SONATRACH's General Management headquarters, marks a significant step towards unlocking the development potential of Algeria's hydrocarbon resources. The collaboration focuses on leveraging ExxonMobil's advanced capabilities and proven experience in the energy sector.

"We are pleased with this step taken in collaboration with ExxonMobil, a pioneering company in the energy sector. The signing of this Memorandum of Understanding opens new perspectives for the development of the Algerian mining sector and demonstrates the mutual desire of the two companies to achieve responsible and sustainable exploitation of our country's natural resources," said the Chairman and CEO of SONATRACH.

John ARDILL, Vice-President Exploration & New Opportunities of ExxonMobil, echoed this sentiment, stating, "This agreement is an important first step in the creation of a partnership that will contribute to further unlocking the development potential of Algeria's resources. Algeria's long history of hydrocarbon development, together with ExxonMobil's advanced capabilities and proven experience, position us for success."

This partnership between SONATRACH and ExxonMobil has significant implications for the global energy sector, as it aims to tap into Algeria's vast hydrocarbon resources. The successful development of these resources could lead to increased energy security and economic growth for Algeria and its European partners.

Algeria, a major gas exporter to Europe, has been actively seeking partnerships with international oil companies to enhance its energy sector. The nation led Africa in natural gas production in 2022, reaching a record 132.7 billion cubic meters, and exceeded 136 billion cubic meters in 2023. The country's Hydrocarbon Law, implemented in 2019, aims to simplify fiscal terms to attract investment and accelerate exploration efforts.

SONATRACH, established in 1963, is the largest company in Africa with 154 subsidiaries. It is recognized being the premier African oil major and aims to position itself a global benchmark among national oil companies. ExxonMobil, with a 140-year history, is one of the world's largest integrated companies in fuels, lubricants, and chemicals, operating across most nations worldwide.

The MoU between SONATRACH and ExxonMobil signifies a crucial moment for Algeria's energy sector. This partnership highlights the potential for collaboration between Algeria and international oil companies to responsibly and sustainably harness the nation's natural resources.

The agreement between SONATRACH and ExxonMobil aims to explore and develop oil and gas resources in Algeria's Ahnet and Gourara basins, focusing on operational excellence, innovation, and sustainability. This collaboration is expected to significantly enhance the development potential of Algeria's hydrocarbon resources.

Key Takeaways

• SONATRACH and ExxonMobil sign MoU to develop oil and gas resources in Algeria's Ahnet and Gourara basins.
• Partnership aims for operational excellence, innovation, and sustainability while respecting the environment.
• Agreement marks a significant step towards unlocking Algeria's hydrocarbon resources.
• Algeria is a major gas exporter to Europe, with record natural gas production in 2022 and 2023.
• Partnership expected to enhance development potential of Algeria's hydrocarbon resources and contribute to energy security.