Africa’s greatest producer and leading exporter of natural gas to Europe, Algeria is of particular interest to Gazprom. A representative office of Gazprom and a branch of Gazprom EP International — a dedicated enterprise within the group deploying upstream projects overseas — ensure a permanent presence in this North African country.
Gazprom EP International operates an E&P project in the El Assel area of the Berkine oil-and-gas-bearing basin.
To date, four gas and oil fields have been discovered within the area. All of them are currently being prepared for development.
To make further progress in business, the Gazprom Group is interested in the Algeria-provided opportunity to publicly bid for hydrocarbon areas and the country’s ambitious program promoting exploration and oil-and-gas infrastructure development. Being state-owned paves the way for both Gazprom and Sonatrach to jointly deliver some Algerian projects through intergovernmental agreements, which, by the way, is not contrary to the current petroleum law.
This, however, does not limit the two companies to intra-country operations only, but, on the contrary, allows for joint operations (if and as proposed by the Algerian side) in third countries; Sonatrach’s presences in the African states being of paramount interest. Seeking an enhanced cooperation encompasses not only exploration and production, but also asset swaps, appraisals and tests on old energy facilities, personnel training and retraining, export optimization through swapping (pipeline gas for LNG) in the global market, the expansion of the fuel-distributing network in Algeria, etc. The sides are mutually interested in such enhanced cooperation.