Energy & Renewables
From The Report: Algeria 2018
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The steep fall of oil prices in 2014 underlined the extent to which the Algerian economy, already under pressure from growing domestic demand for energy and decreasing output, was dependent on hydrocarbons. Algeria is now facing the challenges of reforming and revitalising this strategic sector and, through state-owned energy company Sonatrach and its SH2030 Leading the Change strategy, is giving shape to long-term developments in offshore and shale. Renewables, meanwhile, are set to become an increasingly prominent component of the energy mix. While diversification will need to remain a top priority to avoid economic crises such as that of the 2015-17 period, energy will remain the most prominent sector for the country in the long run. This chapter contains interviews with Abdelmoumen Ould Kaddour, CEO, Sonatrach; Claudio Descalzi, CEO, Eni; Hesham Mekawi, Regional President, BP North Africa; and Fatma Zohra Zerouati, Minister of Environment and Renewable Energy.

Articles from this Chapter

Overview

Encouraging outlook: An increased focus on renewable energy is set to complement the country’s long-term commitment to fossil fuels
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The steep fall of oil prices in 2014 underlined the extent to which the Algerian economy, already under pressure from growing domestic demand for energy and decreasing output, was dependent on hydrocarbons. Algeria is now facing the challenges of reforming and revitalising this strategic sector and, through state-owned energy company Sonatrach and its SH2030 Leading the Change strategy, is giving shape to long-term developments in offshore and shale. Renewables, meanwhile, are set to become an increasingly…

Interview

Bright futures: Abdelmoumen Ould Kaddour, CEO, Sonatrach, on encouraging international partnerships and sparking local participation
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Interview :Abdelmoumen Ould Kaddour What is being done to ensure mutually beneficial partnerships with international companies? ABDELMOUMEN OULD KADDOUR: Current and future partnerships are a core part of our SH2030 strategy. Since early 2017 most litigation with partners have been resolved, and our goal is for Algeria to once again begin attracting major global actors. Considering this, in early October 2018 we signed two deals with Total, with the aim of developing the Erg Issouane gas…

Analysis

Gas giant: As a viable energy alternative, gas will become an increasingly important resource going forward
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As oil output declines and fields mature, state-owned Sonatrach is relying more on Algeria’s extensive gas reserves to maintain exports while meeting growing domestic demand, with gas the focus of its SH2030 Leading the Change transformation strategy. There are two unconventional and offshore exploration wells planned for 2019, seven for 2020 and 12 in 2021 – with half to be carried out by Sonatrach and the other half in partnerships. While more and more offshore and shale gas opportunities are…

Interview

Untapped potential: Claudio Descalzi, CEO, Eni, on investment opportunities in upstream, downstream and renewables
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Interview : Claudio Descalzi How would you assess the potential of the upstream segment in the medium term? CLAUDIO DESCALZI: Algeria still has a great upstream potential. Gas production is proving to be vital as many resources in the south-west basins are being developed and will be producing over the next few years. I also believe that Algeria has much to benefit from re-examining well-known producing plays using newer exploration technologies. This could also open up new plays that were previously…

Interview

Building momentum: Hesham Mekawi, Regional President, BP North Africa, on new technologies and developments in oil and gas
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Intewrview :Hesham Mekawi What can be done to further encourage Algeria’s upstream segment to reach its full potential? HESHAM MEKAWI: We are excited about Algeria’s upstream potential. Its improved infrastructure and reserves make it ideally positioned to become a major global oil and gas supplier. We recently extended the In Amenas production-sharing contract to 2027, and also signed a memorandum of understanding with Sonatrach and Equinor to find and develop gas resources around In…

Analysis

Fuelling growth: A focus on liquefied petroleum gas is central to a drive to increase domestic production
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Despite being a major oil producer, Algeria is a net fuel importer and is thus in the paradoxical position of being rich in hydrocarbons but lacking in refined products. It is currently in the process of developing its refining operations in order to satisfy domestic fuel demand, which has grown steadily since the 2000s. Reducing Fuel Imports The development of refining activities is now more urgent than ever. In 2017 domestic electricity consumption and natural gas consumption increased by 6.4%…

Analysis

Rising tide: Solar and wind power industries are growing thanks to ample potential and decreasing costs
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In November 2018 the government released a new series of tenders for electricity production from renewable sources. A total of 200 MW of solar capacity is available for development, of which 150 MW can be bid on by international independent power producers (IPPs) in partnership with local firms, while 50 MW are reserved for state-owned utilities operator Sonelgaz. This is a key step in opening up the solar segment to IPPs, as Sonelgaz subsidiary SKTM currently dominates the country’s production…

Interview

Green goals: Fatma Zohra Zerouati, Minister of Environment and Renewable Energy, on national strategies to develop renewable sources and improve waste management
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Interview :Fatma Zohra Zerouati What are the main characteristics of the national environmental strategy up to 2030? FATMA ZOHRA ZEROUATI: Based on the rights safeguarded by the constitution, the national strategy for the environment aims to progress the health and quality of life of citizens, the circular economy, food security, the fight against desertification and resilience to climate change. This will ensure the country is able to address future socio-economic and environmental challenges.…