Hydrocarbons: Sonatrach signs MoU with ExxonMobil

APS - 20 April 2020

ALGIERS- The national hydrocarbons company Sonatrach has signed a Memorandum of Understanding (MoU) with the American oil and gas group ExxonMobil to start joint discussions on potential opportunities for exploration and development in Algeria, said the company in a communiqué.

The signing of this Memorandum of Understanding "shows the parties' determination to assess the options for collaboration following the recent promulgation of the new Algerian hydrocarbon law, » said the source.

Last Thursday, the Algerian group signed two MoUs with the Russian company Zarubezhneft and the Turkish company Turkiye Petrolleri Anonim Ortakliôi (TPAO).

A month earlier, in mid-March, the national company had signed an MoU with the American oil company Chevron.

The signing of these memorandums of understanding "confirms the renewed dynamism of the Algerian mining sector, as part of the new attractive provisions introduced by the law on hydrocarbon activities," added the company.

The new law on hydrocarbons, which came into force last January and which maintained the 51/49 rule and Sonatrach's monopoly on the pipeline transport activity, has reduced by more than 20% the tax pressure borne by Sonatrach and its partners, bringing it from 85% to 60-65%.

"In addition to the new services that will soon be opened in Annaba, Batna, Tamanrasset and Bejaia, others will soon be opened at the CHU of Beni Messous and Mustapha Bacha in Algiers, to ensure comprehensive coverage of all the country's regions," Derrar said in a statement to APS.

The same official also announced the signing of an agreement by the Algeria Pasteur Institute and the Directorate of Scientific Research at the Ministry of Higher Education to launch a project for the development and local production of screening kits.

"This operation, the first of its kind, is intended as a contribution to encourage national scientific expertise to rely on its own resources, instead of depending on foreign countries," he said.

Regarding the number of tests carried out by the Institute since the outbreak of the pandemic in Algeria, Derrar said that the Institute has carried out more than 8000 PCR tests.