EU- Algeria Energy: A return of investment for the conclusion of partnership agreement
Algeria has strongly defended in its negotiations,with the EU, for the strategic energy agreement, calling for the strengthening of EU investments in oil and gas, a source close to the issue told APS on Wednesday.
Source : https://www.marocafrik.com/english/EU-Algeria-Ener...
In this agreement the souce said that "we defended a return of energy investments through both upstream and downstream," .The Algerian claim was echoed by the European side as it was included in this agreement, which has been negotiated for several years, the source added to APS.
Algeria and the European Union on Monday (March 19th) agreed to accelerate their strategic energy agreement, APS reported. Algerian Foreign Minister Mourad Medelci and visiting EU Enlargement Commissioner Stefan Fule also discussed the tariff dismantling process and signed a science and technology co-operation agreement.
The energy accord with Algeria will reduce EU dependence on Russian gas particularly during harsh weather conditons. Qatar is also a major gas supplier to Europe.Energy security is a vital element in EU policy and the two gas pilpelines Medgaz and Galsi provide a secure supply of natural gas.Algeria is the oldest exporter of Liquified
Natural Gas in the world. With the security situation in the Gulf still potentially menaced by a possible conflict with
Iran, Algeria is an important market for the EU and Europe is Algeria's biggest export market.The potential for a win win deal is there but it has been delayed for years. In its article APS quotes an unnamed source close to the negotiations as saying "we defended a return of energy investments through partnerships both upstream and downstream," and the EU is keen to realise this agreement which has been in discussion for several years.
International Oil and Gas companies have been involved in Algeria for many years.The reversal of the investor friendly hydrocarbons law in 2009 which compelled IOCs to revert to Sonatrach having the majority holding in the partnership, the 51/49 % rule, which was not well received by IOCs. Tthere were also criticism from the highest government sources of international compapanies who repatriated profits.
The recent settlement of the their tax disputes by Maersk and Anadarko was an encouraging sign that long standing disagreements between IOCs and the Algerian government could be settled. Statements by the Energy Minister and Sonatrach have also indicated that they wil take a more pragmatic attitude to future agreements with IOCs which will encourage future investment and the strategic energy agreement between Algeria and the EU which they have striving for.
Algeria and the European Union on Monday (March 19th) agreed to accelerate their strategic energy agreement, APS reported. Algerian Foreign Minister Mourad Medelci and visiting EU Enlargement Commissioner Stefan Fule also discussed the tariff dismantling process and signed a science and technology co-operation agreement.
The energy accord with Algeria will reduce EU dependence on Russian gas particularly during harsh weather conditons. Qatar is also a major gas supplier to Europe.Energy security is a vital element in EU policy and the two gas pilpelines Medgaz and Galsi provide a secure supply of natural gas.Algeria is the oldest exporter of Liquified
Natural Gas in the world. With the security situation in the Gulf still potentially menaced by a possible conflict with
Iran, Algeria is an important market for the EU and Europe is Algeria's biggest export market.The potential for a win win deal is there but it has been delayed for years. In its article APS quotes an unnamed source close to the negotiations as saying "we defended a return of energy investments through partnerships both upstream and downstream," and the EU is keen to realise this agreement which has been in discussion for several years.
International Oil and Gas companies have been involved in Algeria for many years.The reversal of the investor friendly hydrocarbons law in 2009 which compelled IOCs to revert to Sonatrach having the majority holding in the partnership, the 51/49 % rule, which was not well received by IOCs. Tthere were also criticism from the highest government sources of international compapanies who repatriated profits.
The recent settlement of the their tax disputes by Maersk and Anadarko was an encouraging sign that long standing disagreements between IOCs and the Algerian government could be settled. Statements by the Energy Minister and Sonatrach have also indicated that they wil take a more pragmatic attitude to future agreements with IOCs which will encourage future investment and the strategic energy agreement between Algeria and the EU which they have striving for.
Source : https://www.marocafrik.com/english/EU-Algeria-Ener...