Algiers — The national hydrocarbons company Sonatrach has signed a Memorandum of Understanding (MoU) with the American oil and gas group ExxonMobil to start joint discussions on potential opportunities for exploration and development in Algeria, said the company in a communiqué.
The signing of this Memorandum of Understanding “shows the parties’ determination to assess the options for collaboration following the recent promulgation of the new Algerian hydrocarbon law, » said the source.
Last Thursday, the Algerian group signed two MoUs with the Russian company Zarubezhneft and the Turkish company Turkiye Petrolleri Anonim Ortakliôi (TPAO).
A month earlier, in mid-March, the national company had signed an MoU with the American oil company Chevron.
The signing of these memorandums of understanding “confirms the renewed dynamism of the Algerian mining sector, as part of the new attractive provisions introduced by the law on hydrocarbon activities,” added the company.
The new law on hydrocarbons, which came into force last January and which maintained the 51/49 rule and Sonatrach’s monopoly on the pipeline transport activity, has reduced by more than 20% of the tax pressure borne by Sonatrach and its partners, bringing it from 85% to 60-65%.