Sonatrach, Chevron Ink MoU
Algerian state-run Sonatrach and Chevron have signed a memorandum of understanding to initiate joint discussions on the opportunities concerning the exploration, development and exploitation of oil and gas in Algeria in particular following the promulgation of the new Algerian hydrocarbons law, Sonatrach said March 16.
As per the MoU, the two companies will also work on the transfer of technology and know-how in various segments of the oil and gas industry.
Algeria’s new hydrocarbon law was passed late last year and preserves Sonatrach’s equity position in contracts at 51%, allowing foreign companies to hold 49%. The law also cuts tax burden on Sonatrach and its international partners from 85% to around 60%-65%. The new law comes at a time when local oil and gas output has been on a decline. The government expects the new legislation will help attract foreign oil and gas firms, expand output in the country’s ageing oilfields and help discover new oil and gas resources.
Earlier this month, Sonatrach and Italy's Eni signed a deal on the marketing of dry gas from the Zemoul El Kbar licence at block 403.