Exploration & Production

Algeria offshore deals a step forward, but hurdles remain

Further exploration could help the country boost its resource base, but IOCs are struggling against unattractive fiscal terms Further exploration could help the country boost its resource base, but IOCs are struggling against unattractive fiscal terms.
By Fatima Sadouki 5 November 2018 0 33175
An Eni offshore production platform. (Eni)

Sonatrach’s recent offshore agreements are a step forward in Algeria’s efforts to boost its gas resource base, but efforts to develop existing gas reserves remain hampered by project delays and the lack of a much-needed new hydrocarbon law.

Sonatrach hopes the offshore deals unveiled in late October with Italy’s Eni and France’s Total will result in successes similar to Egypt’s Zohr gas discovery. Algeria’s deep offshore remains largely unexplored, with a limited amount of data available. But preliminary assessments have shown the area’s...