Gazprom – Algeria Offers Joint Oil Explorations Contract

Gazprom – Algeria Offers Joint Oil Explorations Contract: Specialised media suggest (22-23-24.02.2014) that the Algerian national oil company, Sonatrach, is in direct negotiations with Russian oil company Gazprom for the concession of oil-exploration rights in Algeria, in about 30 different sites. According to the media sources available, a second Russian company, Lukoil, has also been invited to jointly develop new oil fields in Algeria, possibly in cooperation with Gazprom (pending their own agreement). Algeria is considered the second largest hydrocarbon power after Nigeria, although oil exploration has been slow in the past decade; 98% of its exports depend on oil and gas, which also accounts for 70% of national budget revenue. As Sonatrach maintains monopoly over Algerian oil and gas exports, any foreign company winning the invitation to tender for the exploration, will only provide the exploration and the extraction services (see a backgrounder by oilprice.com).