Algeria's exisiting oil and gas deposits are ageing and in decline
Large deposits of oil and gas in Algeria are in sharp decline, according to some energy experts and official sources. An article in El Watan asks whether more efficient investment policy and mobilizing alternative sources of energy are they likely to remedy the situation.
Source : https://www.marocafrik.com/english/Algeria-s-exisi...
Youcef Yousfi Sonatrach's CEO recently answered a question on the life of Algeria's hydrocarbon reserves by saying that : in terms of production, Sonatrach had always said that Algeria's reserves were modest, "but they are, according to him," sufficiently substantial to satisfy all needs in the medium term local and export. "
Abdelmadjid Attar, former CEO of Sonatrach, commented that the decline referred to by Mr Yousfi has been an open secretsince 2007. "It is also quite normal, as the largest Algerian deposits that contribute to the bulk of production, whether in combination or operated by Sonatrach alone are beginning to age.
The government of Abdelmalek Sellal has introduced amendments to the hydrocarbons law to encourage further investment but it risks being caught between the need to enocourage investment but is faced with declining foreign investment asa result of falling production,the article says. The article quotes some experts as saying that Algeria couldbecome anet oil importer by 2020 and Algeria's gas reserves of 4.5 trillion cubic meters could face depletion by 2030. Algeria's electricty generation replies heavily on gas and Algeria exports gas and LNG to Europe and elsewhere.
The governmenthas said it hopes for a 50% increase gas exports within five years. But the projections may be overstated given the economic situation in the euro area and some emerging countries, still being adversely affected by the global economic downturn.
However experts and Sonatrach consultants agree that they still have a number of years to devise a strategy to resolve the supply situation.. The article says that the enormity of the challenge is, not properly considered by the government. The operation and maintenance of deposits is notthe sole issue.
Abdelmajid Attar wonders if the government can arrest the decline.The government's rsponse he says is not necessarily the right one. International oil and gas companies (IOCs) are increasingly reluctant to invest more in exploration Shale gas may play an important role insolving the renewal of reserves and there is considerable offshore potential.There have been renewed calls recently for Algeria to diversify its economy from hydrocarbons.
Abdelmadjid Attar, former CEO of Sonatrach, commented that the decline referred to by Mr Yousfi has been an open secretsince 2007. "It is also quite normal, as the largest Algerian deposits that contribute to the bulk of production, whether in combination or operated by Sonatrach alone are beginning to age.
The government of Abdelmalek Sellal has introduced amendments to the hydrocarbons law to encourage further investment but it risks being caught between the need to enocourage investment but is faced with declining foreign investment asa result of falling production,the article says. The article quotes some experts as saying that Algeria couldbecome anet oil importer by 2020 and Algeria's gas reserves of 4.5 trillion cubic meters could face depletion by 2030. Algeria's electricty generation replies heavily on gas and Algeria exports gas and LNG to Europe and elsewhere.
The governmenthas said it hopes for a 50% increase gas exports within five years. But the projections may be overstated given the economic situation in the euro area and some emerging countries, still being adversely affected by the global economic downturn.
However experts and Sonatrach consultants agree that they still have a number of years to devise a strategy to resolve the supply situation.. The article says that the enormity of the challenge is, not properly considered by the government. The operation and maintenance of deposits is notthe sole issue.
Abdelmajid Attar wonders if the government can arrest the decline.The government's rsponse he says is not necessarily the right one. International oil and gas companies (IOCs) are increasingly reluctant to invest more in exploration Shale gas may play an important role insolving the renewal of reserves and there is considerable offshore potential.There have been renewed calls recently for Algeria to diversify its economy from hydrocarbons.
Source : https://www.marocafrik.com/english/Algeria-s-exisi...