The Algerian oil group Sonatrach, a key energy player in North Africa, is preparing to strengthen 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 foundations of a new strategic partnership were laid. This agreement, scheduled to be signed during the first half of 2024, will focus on the evaluation and development of gas fields in the Illizi South region.
According to a press release from the Sonatrach group published on its website, the project is part of a memorandum of understanding signed on 4 mars 2024 between the two companies. The main objective is to efficiently exploit the gas resources of Illizi Sud according to a rapid and optimized model.
This initiative reflects the desire of both parties to develop robust partnerships in the hydrocarbon sector, while exploring other opportunities in the oil and gas value chain. In addition to extraction, this contract aims to strengthen the technical and operational capacities of both parties in a strategic region for Algeria.
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Growing ambitions for gas exports
This partnership is part of Algeria’s broader vision to significantly increase its natural gas production in the years to come. According to the Minister of Energy, Mohamed ArkabAlgeria plans to increase its annual production to 200 billion cubic meters within five years, against 137 billion cubic meters Currently. Half of this production will be dedicated to export, with the aim of satisfying growing European demand while meeting domestic needs.
This ambition is supported by major investments in gas infrastructure involving Sonatrach, in particular the “Boosting Hassi R’Mel” project, which aims to extend the life of existing fields. In addition, recent agreements with international players like Exxon Mobil demonstrate an opening strategy aimed at attracting capital and expertise to support this expansion.
With Sonatrach, Algeria becomes a strategic player for Europe
In a context of geopolitical tensions and diversification of energy supplies, Algeria has taken a leading place on the European market. In October 2024, it became the largest gas supplier to the European Union, overtaking Russia. Thanks to its two main gas pipelines, Medgaz et Transmedand an ambitious investment program, Algeria is strengthening its position as a strong partner for Europe’s energy security.
By consolidating its international alliances and optimizing its resources, Algeria affirms its desire to become a world leader in natural gas, responding to the energy challenges of the 21st century.
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