Energy
From The Report: Algeria 2013
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As the world’s 15th-largest oil producer and ninth-largest producer of natural gas, Algeria largely relies on its significant hydrocarbons reserves and strong export markets in Europe and the US to drive its economy. In 2012 the country produced almost 1.7m barrels per day of oil and 81.5bn cu metres of natural gas. State-owned Sonatrach controls around 80% of the upstream segment; however, foreign firms have long had a presence in Algeria and there continues to be major interest from international oil companies. In recognition of the country’s heavy reliance on oil and gas for power, efforts are being made to develop other sources of energy such as solar power and shale gas deposits. In early 2013 a series of changes were made to the Hydrocarbons Law, which promise to further attract foreign investors.

This chapter contains interviews with Youcef Yousfi, Minister of Energy and Mines; and Touffik Fredj, President & CEO for North-west Africa, General Electric.

Articles from this Chapter

Overview

Digging deep: With large tracts of the country unexplored, the best may be yet to come
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In terms of performance and, particularly, potential, Algeria is a major player in hydrocarbons. According to BP’s “Statistical Review of World Energy 2013” (SRWE), it ranked 15th among the world’s oil producers in 2012, with output of almost 1.7m barrels per day (bpd), 1.8% of the global total. Its performance in natural gas ranked it ninth, with marketed gas at 81.5bn cu metres (bcm) in 2012 and world share at 2.4%. Served by developed production and distribution infrastructure,…

Analysis

The prodigal sun: Renewables have huge potential for domestic use, and possibly export
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With electricity consumption rising inexorably, power production almost entirely gas-based and Algeria’s leadership increasingly conscious of the need to husband exportable gas resources, the country is placing ever-greater hopes on renewable sources of energy. This is particularly the case as a means of feeding domestic demand for electricity, but possibly also as a way of diversifying energy exports, by sending power generated in the south to consumers in Europe. BRIGHT PROSPECTS: Space…

Interview

A balanced approach: OBG talks to Youcef Yousfi, Minister of Energy and Mines
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Interview:Youcef Yousfi What were the reasons behind the low participation rate in the last three tenders? YOUCEF YOUSFI: First, we must reframe the debate on the state of Algeria’s economy that had characterised the period when the tenders were launched. As you know, like many countries we have suffered from the effects of the global economic crisis, and this has been an obstacle to the resumption of the announced growth. The world demand for oil and gas has slowed down. Given this context,…

Interview

OBG talks to Touffik Fredj, President & CEO for North-west Africa, General Electric (GE)
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Interview:Touffik Fredj How much potential is there for the development of smart grids, and how can it be encouraged? TOUFFIK FREDJ: GE’s approach to smart grids integrates two key infrastructures: firstly, electrical, focused on renewable sources and enhanced productivity, and secondly, information, empowering customers, reducing greenhouse gas emissions and strengthening energy sector efficiencies. There are tremendous opportunities for growth in Algeria, where energy demand is estimated…

Analysis

Exploring the future: The focus on finding new reserves is intensifying
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At a press conference in September 2013, Algeria’s minister of energy and mines, Youcef Yousfi, announced that hydrocarbons giant Sonatrach had made some “very important” and “extremely promising” gas finds and that the country’s natural gas reserves were “not falling, but rising”. These statements were repeated in October at a conference in London, with plans of “more than doubling” gas output in the next seven to 10 years. Yousfi also expressed confidence that Algeria…

Analysis

Shale and hearty: The discovery of substantial reserves could transform the industry
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In recent years, conventional reserves of fossil fuels such as oil and gas have been steadily dwindling. With renewables not yet sufficiently developed to end dependence on these resources, the world faced a stark choice: either return to more hazardous and more polluting sources such as nuclear and coal, or accept dramatically higher energy prices and constraints on economic activity. In recent years, however, a quiet revolution has taken place. In the US, after decades of deindustrialisation,…

Analysis

New deal: A series of changes to the Hydrocarbons Law could draw investors
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Long-pending and extensive amendments to Algeria’s 2005 Hydrocarbons Law cleared parliament in January 2013 and were passed into law shortly after. The changes were made in part to attract investment into unconventional resources and stoke interest in new bidding offers, following three rounds in recent years that produced disappointing results. HISTORY: The 2005 law was itself a sizeable change to the 1986 regulatory code. Hitherto restricted in exploration and production (E&P) contracts,…

Analysis

Powering ahead: Capacity increases are set to help the country deal with rising demand
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The biggest contract in the history of the Algerian power sector was signed in September 2013 by US multinational General Electric (GE) and Société Algérienne de la Production d’Electricité, the production subsidiary of state-owned Sonelgaz. It provided for delivery of the equivalent of around 70% of the generating capacity Algeria has in place at present and promised long-term cooperation that could result in a strong domestic equipment production sector. The outcome of an international…