Algeria’s Sonatrach and US major Chevron signed a Memorandum of Understanding (MoU) on 12 March to “initiate joint discussions on opportunities concerning exploration, development and exploitation of hydrocarbons in Algeria,” according to a statement released by the state firm this week.
Algeria is desperate to attract foreign investment back into the sector in a bid to stymie decline. Crude output fell from 1.43mn b/d in 2006 to just 1.03mn b/d last year, while gas is down from 94.8bcm in 2016 to 86.1bcm in 2019. In January, the country enacted a new oil law which reduces the tax burden (MEES, 10 January). Though the MoU is non-binding, there is clear interest from Chevron. “This MoU helps the assessment of potential resources in the country and advances Chevron’s growth strategy in the region,” the firm tells MEES. (CONTINUED - 380 WORDS)