Energy
From The Report: Algeria 2012
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Algeria is ranked the fourth-largest producer of crude oil in Africa, with an estimated 12.2bn barrels of proven reserves as of January 2012. The country was also estimated to have 159trn cu feet (tcf) of proven natural gas reserves as of January 2012 and produced 2.83 tcf of natural gas in 2010. Given its substantial reserves, Algeria has maintained its position as a major global player in the hydrocarbons sector. Numerous contracts have been signed with international firms for new projects, which include plans to develop gas fields and unconventional sources. With new, long-awaited revisions to the hydrocarbons law, collaboration with international oil and gas firms is expected to intensify in the future. Algeria also has proven deposits of valuable minerals such as gold, zinc, copper, lead, uranium and phosphates. However, these have so far been largely unexplored. Therefore, as part of its economic development and diversification plans, Algeria is now setting up joint ventures with international mining companies to exploit these mineral reserves. The government offers incentives for investors in the mining sector, including tax exemptions and rebates.

This chapter contains interviews with Youcef Yousfi, Minister of Energy and Mines; Abdelhamid Zerguine, CEO, Sonatrach; Jean-Marie Dauger, Executive Vice-President, Global Gas & LNG Business Line, GDF Suez; and Farid Benhadji, CEO, Manal.

Articles from this Chapter

Overview

Added momentum: Legal changes should boost foreign interest, while development of shale and renewables is in the works
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Given its substantial oil and gas reserves, Algeria has maintained its position as a major global player in the hydrocarbons sector. Of all the oil exporters in the world, Algeria ranks 16th, with most of its oil heading to the US and Europe. Algeria is the fourth-largest crude oil producer in Africa, with an estimated 12.2bn barrels of proven reserves as of January 2012, according to the Oil and Gas Journal. The country was estimated to have 159trn cu feet (tcf) of proven natural gas reserves…

Analysis

Testing the waters: Desalination and improvements to transport infrastructure are key to adequate water supply
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As a predominately arid and semi-arid country, Algeria must carefully manage its limited water resources. In the past decade, it has witnessed recurring water shortages due to increasing demand from growing industries and the populace, as well as the effects of drought and pollution. For the past 30 years, Algeria’s rainfall levels have been below average. This is compounded by the issue of distribution, as most of the population is located in the north of the country, along the coast, and…

Interview

Foreign friends: OBG talks to Youcef Yousfi, Minister of Energy and Mines
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Interview: Youcef Yousfi How can Algeria reduce consumption of fossil fuels and develop sources of renewable energy? YOUCEF YOUSFI: Natural gas, a widely available resource, long helped to meet the country’s energy needs. Our electricity is almost entirely produced from natural gas, but national and international energy plants are experiencing major changes that will affect our country. Given our significant energy potential and the need to plan the use of these resources, it is imperative to…

Analysis

Laying down the law: New hydrocarbons legislation is expected to provide a much-needed tax break
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After three rather disappointing bidding rounds and increasingly lacklustre interest from international oil and gas companies, Algeria’s minister of energy and mines, Youcef Yousfi, declared towards the end of 2011 that the country needed to review its hydrocarbons legislation. Algeria’s Council of Ministers approved changes to its 2005 Hydrocarbons Law on September 17, 2012. The amendments introduce further tax incentives to attract international oil and gas companies to invest in the hydrocarbons…

Analysis

Sparking interest: Expanding access to electricity and increasing capacity through foreign partnerships
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Due to recent power cuts during the summer of 2012, Algeria is accelerating plans to expand its capacity. According to statements made by the minister of energy and mines, Youcef Yousfi, the government is planning to increase output from the current 11,000 MW to 19,000 MW within the next five years, almost doubling capacity. Previously, the ministry had projected that the planned increase of 4000 MW for the period between 2011 and 2016 would be sufficient to meet rising demand. The estimates…

Interview

OBG talks to Abdelhamid Zerguine, CEO, Sonatrach
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Interview: Abdelhamid Zerguine In what way will the new hydrocarbons law encourage foreign partnerships? ABDELHAMID ZERGUINE: The amendments to the hydrocarbons law will potentially boost foreign investment, in particular exploration activities, as new incentives and synergies will be introduced to the sector. The public authorities aim to strengthen exploration activities while increasing the country’s reserves, through efforts to boost unconventional resources. We plan to intensify investment,…

Interview

OBG talks to Jean-Marie Dauger, Executive Vice-President, Global Gas & LNG Business Line, GDF Suez
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Interview: Jean-Marie Dauger How important will the role of natural gas be within the world energy mix? JEAN-MARIE DAUGER: According to the International Energy Agency, the world demand for energy will increase by 40% between 2009 and 2035. About 90% of this new demand is expected to come from non-Organisation for Economic Cooperation and Development countries due to their demographic vitality and their drive to catch up in per capita energy consumption. This increase will also have to integrate…

Analysis

Unconventional thinking: Conditions improve for shale gas exploitation
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As an OPEC member and major gas exporter, Algeria has plans to develop its shale gas reserves and offshore production to secure a long-term supply of energy for both exports and the domestic market. In 2012 state-owned energy company Sonatrach began to drill for shale gas in the Ahnet basin, located south of In Salah in the south-west of the country. Two additional locations are scheduled to be drilled before the end of 2012. Tests, also carried out by Sonatrach, in three provinces covering 180,000…

Analysis

Powering up: Nuclear energy has attracted interest as a potential alternative
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Since 2006 Algeria has shown growing interest in using nuclear power as an alternative means of generating energy, and recent power shortages have provided the impetus plans to realise this. “We plan to generate 13% of electricity from nuclear energy by the year 2050,” Youcef Yousfi, minister of energy and mines, told OBG. NUCLEAR INSTALLATIONS: Currently Algeria does not have a nuclear power plant, but it does operate several nuclear installations. These include the Nur reactor, which…

Analysis

Under the sea: Offshore drilling continues to grow
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For many, offshore hydrocarbons exploration constitutes perhaps the final oil and gas frontier. Offshore drilling targets deposits trapped beneath the ocean floor – or in some cases beneath inland lakes and seas – which are accessed through wellbores in the seabed. It is the most complex and expensive way of exploiting oil and gas deposits. Wells are drilled from a variety of facilities, including platforms and deepwater mobile offshore drilling units, with offshore production presenting…

Analysis

Under the sea: Offshore drilling continues to grow
OBG
plus

For many, offshore hydrocarbons exploration constitutes perhaps the final oil and gas frontier. Offshore drilling targets deposits trapped beneath the ocean floor – or in some cases beneath inland lakes and seas – which are accessed through wellbores in the seabed. It is the most complex and expensive way of exploiting oil and gas deposits. Wells are drilled from a variety of facilities, including platforms and deepwater mobile offshore drilling units, with offshore production presenting…

Interview

OBG talks to Farid Benhadji, CEO, Manal
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Interview: Farid Benhadji What are the plans for the development of phosphate production going forward? FARID BENHADJI: Algeria has a host of mineral substances, including phosphates. Despite efforts by companies in charge of geological mapping and mineral research, most resources remain largely untapped and the mining sector is underexplored. Algeria is a relatively small phosphate supplier, but plans are being implemented to reach 6m tonnes in 2013 and 12m tonnes by 2018. Algeria currently produces…

Overview

A rich vein: Developing mineral resources in conjunction with international partners
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Although it is well known as a major player in the global oil and gas industry, it is Algeria’s mining sector that is now in the spotlight, with the country expected to benefit from recent legislative and regulatory changes, as well as increasing government backing. Mining has long been considered an important basis for industrial development and is a vital part of various national plans and strategies. As part of a broader effort to diversify the economy away from reliance on hydrocarbons,…