Algeria’s In Salah development (BP 33.15%, Equinor 31.85%, Sonatrach 35%) saw output rebound to around 360mn cfd for Q3 2020, up from Q2’s record low of low of 200mn cfd but still 52% down on Q1. The last two quarters are the lowest for any comparable period since the start-up year of 2004 (see chart 1).
It is unclear to what extent this year’s output slump has been due to upstream issues, or whether shut-ins have been driven by lack of demand from core customers Italy and Spain for Algeria’s relatively pricey gas exports (MEES, 2 October). Faced with this huge slump in demand for its gas, Algeria has also been cutting output (MEES, 26 June). However aging fields coupled with a dearth of fresh projects will have also contributed to an estimated multi-year low of 7.3bn cfd production in the second quarter. (CONTINUED - 270 WORDS)