Algeria and Libya are set to enhance their collaboration in the oil sector, as Algeria’s state-owned energy company, Sonatrach, expresses openness to deeper cooperation with Libya.
Sonatrach’s CEO, Rachid Hachichi, announced the company’s plans to resume operations in the Ghadames Basin and explore further partnerships with the Libyan National Oil Corporation.
Hachichi made these remarks during the “Gastech 2024” conference held in Texas, USA. He revealed that Sonatrach is working with Algeria’s Hydrocarbon Regulatory Agency to launch new tenders by the end of the year.
As part of the Algeria-Libya partnership, Sonatrach plans to invest $50 billion between 2024 and 2028 in oil exploration, production, and development.
Sonatrach has significant gas export capabilities to Europe, with a pipeline capacity of 43 billion cubic meters per year, as well as four liquefied natural gas (LNG) facilities, which provide flexibility to meet Europe’s demand.
In November 2023, Sonatrach lifted the force majeure status on its contractual areas in Libya and resumed operations in January 2024.
Additionally, Sonatrach and Libya’s National Oil Corporation signed amendments to extend exploration periods in contract areas 95/96 and 65 in the Ghadames Basin during the Libya Energy and Economic Summit in Tripoli.
In February 2024, Sonatrach’s central director for new resources, Youcef Khenfer, highlighted the company’s significant oil discoveries in Libya and Niger.
He emphasized Sonatrach’s focus on exploring new fields in these countries and ongoing negotiations with foreign companies to sign hydrocarbon contracts by the end of 2024.
Khenfer also noted that Algeria, as the largest natural gas supplier in the Mediterranean and Africa, is keen to maintain its leading position by exploring new fields and improving the production of existing ones.
This strengthened partnership between Algeria and Libya aims to further boost energy collaboration and increase oil and gas production, benefiting both nations in the coming years.
