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Algeria seeks upstream oil and gas consultants

29 May 2023

Algeria’s state-owned oil and gas company Sonatrach has issued a request for expressions of interest from companies that are specialised in carrying out studies and consultancy work focused on developing oil and gas assets.

In a statement, it said that that the company must have the ability to carry out integrated reservoir studies.

These are expected to potentially cover:

  • Geological and geophysical studies
  • Development plans
  • Reservoir management for mature fields
  • Laboratory analysis
  • The study of reservoirs of unconventional oil and gas deposits

Sonatrach also said that it would welcome companies that could certify reserves, although this was not essential.

In its statement it said that candidates are required to express their interest within 45 days of the publication of the request for expressions of interest.

Last month, Algeria announced six new hydrocarbon discoveries, including two in the country’s Amguid Messaoud basin.

All of the discoveries were made during the first quarter of 2023, according to a statement released by Sonatrach on 11 April.

In the statement, it said that the two gas discoveries made in the Amguid Messaoud basin have significant oil and gas potential.

In addition, two oil and condensate gas finds were made in the Berkine basin, along with an oil and gas discovery in the Oued Mya basin and a discovery of condensate gas in the Ohanet region.

Sonatrach discovered 35 oil and gas fields between 2020 and the end of 2022, according to company data, one of which was jointly developed with the Italian energy major Eni.

Algeria is struggling to ramp up production to meet demand from Europe. Investment is needed to develop new energy projects and maintain and upgrade existing infrastructure.

In January, Eni and Sonatrach signed agreements designed to boost the North African company’s gas export capacity.

The two energy companies signed agreements on 23 January during Italian Prime Minister Giorgia Meloni's first trip to Algiers, where she met the country's President Abdelmadjid Tebboune.

In July 2022, Eni, the US’ Occidental and French Total signed a $4bn oil and gas production-sharing contract with Sonatrach.

Before the Russian and Ukraine war, Algiers provided the European Union with only 11 per cent of its gas needs, compared to 47 per cent from Russia.

The African country exports about 83 per cent of its gas to Europe, most of it to Italy and Spain, which in 2021 received 65 per cent of Algeria’s gas exports.

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Wil Crisp

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