Algeria's Energy Future was launched at a half-day round-table seminar at Chatham House, London, on Wednesday 6 April.
The report was presented at the seminar by its lead authors, Jon Marks and John Hamilton, and critically assessed by Algerian and international experts. Read more
The African Energy Atlas has established itself as an indispensable resource for energy industry professionals.
The 2011 edition features more than 45 maps and charts drawn with expert care by journalist cartographer David Burles. Read more
Briefings and Reports 2
AfricaHardball is an executive dialogue that brings together policy-makers, industry leaders and analysts to discuss the key political issues affecting African markets in frank and open terms.
The next AfricaHardball roundtable will be held on 1 December in London, focusing on North Africa Read more
Briefings and Reports 3
A detailed and frank analysis of Libya’s energy sector
Published in July 2010, Libya's Energy Future provides authoritative, independently sourced analysis of Libya’s energy sector policy and history, examines the country’s governance and financial record and assesses the potential for international partners to do business with its institutions and interest groups.
On the page below you will find a selection of articles from the African Energy archive. All links preceded by a padlock symbol require a subscription.
Sonatrach forecasts confirm gas field declines as Algeria confronts difficult political future
The publication of Algeria’s Energy Future brings data into the public domain that show how Sonatrach expects gas output to decline, adding to pressures to develop non-conventional reserves, as well as the underperforming non-hydrocarbons economy. Critical decisions on politics and economic policy must be taken now if Algeria is to successfully confront a series of critical challenges, the African Energy report’s launch seminar concluded
Another licensing round has disappointed, with Agence Nationale pour la Valorisation des Ressources en Hydrocarbures (Alnaft) on 17 March awarding only two out of ten oil and gas permits on offer. Spain’s Cepsa was the sole international company to win a contract. The other licence was awarded to state company Sonatrach. Both contracts are in the Berkine Basin.
The rethinking of key aspects of industry strategy by energy and mines minister Youcef Yousfi could have a marked impact on midstream and downstream plans.
Energy and mines minister Youcef Yousfi has confirmed reports that BP has decided not to sell its equity in major producing assets in Algeria (AE 202/4).
Sonatrach will maintain its exploration activities in Libya despite the crisis there, energy and mines minister Youcef Yousfi told Algiers daily El Khabar on 12 March.
With North African governments revising their policies in the wake of the region’s political convulsions, a visit to Algeria by Moroccan energy, mines, water and environment minister Amina Benkhadra raised the prospect that the kingdom might increase liftings of Algerian gas via a new pipeline from Hassi R’Mel, and develop a range of other projects, helping to relaunch the moribund Maghreb unity agenda.
To no great industry surprise, state energy giant Sonatrach has told companies that the submission of bids for Algeria’s latest licensing round – the third to be under the control of regulator Agence Nationale pour la Valorisation des Ressources en Hydrocarbures (Alnaft) – has been delayed from 3 March until at least 17 March.
Algeria power update: Sonelgaz lines up big project flow as demand rises sharply
Responding to a dramatic increase in domestic demand for gas-fired electricity, the Sonelgaz Group is looking to build some 11GW of new power plants by 2020 – equivalent to current capacity – while also promoting a new renewables industry. African Energy’s new Algeria power update reflects plans to raise power capacity by 15,000MW by 2015 with a focus on generation schemes.
South-west and Berkine Basin contracts inch forward
The Council of Ministers on 3 February reviewed a host of measures related both to the recent unrest in the country and also to economic development. Among the dozens of decisions came the approval of four presidential decrees on oil and gas exploration. Issue 203, 18 February 2011. more
As Algeria awaits new policy directives, Sonatrach clears the decks for return to action
While the government quietly accelerates reforms to counter pressures that have exploded in Tunisia and Egypt, the state energy giant is preparing new management structures that should speed implementation of major projects. Officials know they must raise their game to attract investment and create jobs, writes Jon Marks in Algiers Issue 202, 4 February 2011.more
South-west ready to blossom when Sonatrach says so
International oil companies (IOCs) are hoping the changes promised across the energy sector will accelerate decision-making on key projects that will turn south-west Algeria into a major new gas hub. Issue 202, 4 February 2011.more
Algeria places heavy emphasis on industrial investment to underpin ambitious solar drive
The much-anticipated new renewables policy will push international partners to set up equipment manufacturing and other local operations as Algeria manoeuvres to exploit its resources and become a major player in emerging solar industries, writes Jon Marks
Where a reinvigorated Egypt leads, other Arab states may follow
Tunisia’s Jasmine revolution, which drove Zine El Abidine Ben Ali into exile in Saudi Arabia on 13 January, was the unexpected trigger that has made Arab populations wake up after decades of submission to personalised, autocratic regimes. But it is events in Egypt that will drive how the ‘Arab street’ and those who seek to dominate it assess their next moves in this pivotal moment for the Middle East and North Africa (Mena).
Petrofac has won a $1.2bn lump-sum engineering, procurement and construction contract from In Salah Gas (ISG), an association between Sonatrach, BP and Statoil, to develop southern fields in the In Salah project.
Ireland’s Petroceltic International has announced that well AT-4 on its Isarene permit in the Illizi Basin confirmed the presence of a gas column with pressure continuity on the previously undrilled eastern flank of the Ain Tsila field (AE 198/14).
Cegelec has won a tender to build Algeria’s first wind farm. Sonelgaz said on 13 December that the French electrical engineering company had offered to invest €23m ($31m) in the 10MW project on 30ha in Kabertene, near the south-western city of Adrar.
Sonatrach banishes corrupt legacy with new ethics code
State energy giant Sonatrach has established a powerful ethics committee to enforce a new code of conduct which was published in English and French on its website on 25 November.
Biggest EIB loan for Med energy goes to Medgaz pipeline
The European Investment Bank (EIB) has signed agreements for a E500m ($718m) loan to the Medgaz project company for the construction of a gas pipeline between Algeria and Spain.
Algiers and Rome put Galsi pipeline back on the agenda
Despite being written off by some commentators, who have questioned its commerciality, the planned Galsi pipeline, to take gas from eastern Algeria via Sardinia to central Italy, is going ahead after several long delays.
The Algesco joint venture of GE Oil & Gas with state companies Sonatrach and Sonelgaz has opened a new service centre at Boufarik, 35km from Algiers. Issue 198, 19 November 2010.more
Petroceltic starts appraisal drilling
Petroceltic International has announced the start of appraisal drilling on the Isarene permit. Issue 198, 19 November 2010.more
New UK ministers focus on North Africa
London has enjoyed close security co-operation with Algiers and Tripoli for some time, but the relationship is now more overt and ministerial attention more focused. Issue 198, 19 November 2010.more
Fall in gas output raises fears of Algerian export squeeze
A sharp decline in gas production and exports has reignited fears about the health of reserves and Algeria’s failure to find any major new deposits in recent years, writes John Hamilton Issue 197, 5 November 2010.more
Algiers optimistic on licensing
Nearly 80 companies have prequalified in terms of financial resources and technical aptitude for the forthcoming licensing round. Issue 197, 5 November 2010.more
Petroceltic drilling plans
Dublin-based Petroceltic International is preparing to carry out appraisal drilling at its Illizi Basin Ain Tsila field between December and mid-2011. Issue 197, 5 November 2010.more
Sonatrach approval needed for BP Algerian asset sale
Having bundled its prime Algerian assets into its offer of major operations for sale, following the Deepwater Horizon debacle, BP is still awaiting clarification from state company Sonatrach and the Algiers authorities about their attitude to any potential sale of its stakes in the In Salah and In Amenas gas fields. Issue 197, 5 November 2010.more
Defeated Spain talks again on gas price
Spain’s industry, tourism and trade minister Miguel Sebastián met energy and mines minister Youcef Yousfi on 18 October to discuss the Medgaz pipeline, and the price at which Algerian gas will be sold in Spain. Issue 197, 5 November 2010.more
Refinery strategy under review
As well as studying planned petrochemical projects that may use too much gas, Algeria faces difficult decisions over its refining policy Issue 197, 5 November 2010.more
Petroceltic plans Ain Tsila appraisal
Petroceltic has given oilfield service company Expro a year-long contract for the Isarene permit area Issue 196, 22 October 2010.more
No change to terms for bid round
The Ministry of Energy and Mines is already quietly downgrading expectations for the outcome of Agence Nationale pour la Valorisation des Ressources en Hydrocarbures (Alnaft)’s third licensing round (AE 193/10). Issue 195, 8 October 2010.more
BP’s Russian partners open talks on asset buy
BP’s Russian oil exploration joint venture TNK-BP is interested in buying the British company’s Algerian assets, and Sonatrach is considering whether to approve the deal. Issue 195, 8 October 2010.more
Technip gets Algiers refinery contract, Saipem moves ahead with LPG order
Sonatrach has started awarding contracts for key projects again after a year of paralysis caused by corruption investigations and management changes Issue 195, 8 October 2010.more
Creg eyes rise in electricity consumption, but downplays pressures on gas reserves
Electricity production and consumption are projected to rise sharply in Creg’s latest forecast, pointing to a further spate of new-build, predominantly gas-fired power plants being ordered in the next decade. Even so, the Algerian regulator is projecting a slower increase in gas demand than was previously forecast, writes John Hamilton Issue 194, 24 September 2010.more
Algeria’s new licensing round will provide a chance to gauge how well the sector has recovered from the series of sackings and corruption allegations that have undermined confidence in the last year. Issue 193, 10 September 2010.more
As BP ponders Algerian assets, IOCs look for flexibility from the energy sector’s new top team
While Algiers tries to gain better control over Sonatrach’s operations, IOCs remain concerned that the authorities are prone to inflexibility and obsessed with outmoded concepts of national interest. It is in this complex operating environment that speculation is mounting that BP might sell its Algerian assets, write Jon Marks and John Hamilton Issue 192, 6 August 2010.more
Sonelgaz bail-out shows how state solutions still predominate
Recent events at state utility Sonelgaz Holding seem to point to the limits of radical thinking on major Algerian energy sector problems. Issue 192, 6 August 2010.more
Sonatrach’s international operations under scrutiny
Sonatrach’s international upstream and downstream operations, which were promoted by former energy and mines minister Chakib Khelil, have come under scrutiny from the Algerian energy sector’s new management and from investigative authorities. Issue 192, 6 August 2010.more
Petroceltic progress on Isarene, disappointment at Ksar Hadada
While its Tunisia well proved non-commercial, Petroceltic International has signed a contract for appraisal drilling on Algeria’s Isarene permit with Dubai-based drilling contractor Dalma Energy. Issue 192, 6 August 2010.more
Parastatal JV plans offshore drilling
Sonatrach has agreed a $20m partnership contract to explore in the Tunisian offshore via its Numhyd joint venture with Entreprise Tunisienne des Activités Pétrolières (Etap). Issue 192, 6 August 2010.more
Downstream hydrocarbons update: too many Maghreb projects stalled on the drawing board
The first of a new series of Downstream hydrocarbons update tables suggests there are plenty of projects awaiting lift-off to add value to North African oil and gas producers. But too many schemes in the Maghreb remain stalled for lack of finance and serious development partners Issue 191, 23 July 2010.more
Government bails out Sonelgaz
The government has stepped in to ease state utility Sonelgaz Holding’s financial troubles by buying an AD200bn ($2.62bn) overdraft. Issue 190, 9 July 2010. more
Sonatrach veteran out of the frying pan
Former Sonatrach vice president (downstream) and interim president Abdelhafid Feghouli has been appointed president and chief executive of the Algerian energy giant’s subsidiary Tassili Airlines (Tal), succeeding another former VP, Hocine Chekired, who was relieved of his duties with three other Sonatrach officials. Issue 189, 25 June 2010.more
After Khelil, Algeria has new minister and Sonatrach top team, but critical questions remain
Chakib Khelil has finally been removed to be replaced by an industry veteran whose economic outlook and political affiliations are subject to widely differing interpretations. The removal of Algeria’s longest-serving energy minister and President Bouteflika’s new appointments are unlikely to herald a return to the more liberal mood of mid-decade, write Jon Marks and John Hamilton Issue 188, 11 June 2010.more
Algeria’s new energy minister: who is Youcef Yousfi?
The new Algerian energy and mines minister was born in the eastern city of Batna on 2 October 1941. Many Algerians will appreciate not having another minister from the west, where President Abdelaziz Bouteflika and many of his most loyal supporters come from. Issue 188, 11 June 2010.more
Algerian finance unaffected by Sonatrach scandals
Insurance markets are unmoved by the corruption enquiries at Sonatrach that have forced the replacement of the state oil company’s top management, but the question of an eventual successor to President Bouteflika is less clear Issue 187, 28 May 2010.more
Cherouati opens his account
The Algerian state company’s new president-director-general Nouredine Cherouati made his first media appearance on 20 May, more than a fortnight after his appointment (AE 186/5). Issue 187, 28 May 2010.more
Sonatrach gets new head, but IOC concerns remain
A conservative choice to lead the national oil company may send a defiant message to minister Khelil’s critics Issue 186, 14 May 2010.more
No respite for Algeria after Oran summit failures
Algeria and its energy industry are transfixed by drift and inertia as anti-corruption enquiries continue, energy minister Chakib Khelil is put under pressure and President Bouteflika’s intentions remain unclear Issue 185, 30 April 2010.more
Petrofac gives GE Oil & Gas $100m contract for El Merk
Petrofac has given GE Oil & Gas a contract worth $100m to supply turbo-compression equipment for Groupement Berkine’s El Merk central processing facility (CPF) in the Berkine Basin. Issue 185, 30 April 2010.more
Hassi R’Mel-Béni Saf pipeline phase 3 opens, Medgaz delayed
The third and final phase of the Hassi R’Mel-Béni Saf (GZ4) gas transport pipeline, running from Mohammedia to Béni Saf, is now operational (AE 172/22). Issue 185, 30 April 2010.more
Sonatrach makes two Illizi finds
Sonatrach has announced two hydrocarbons discoveries in the Illizi Basin. The company said it made the finds with the In Akamil-2 (IAK-2) well in Block 239a and the Ain Antar Est-2 (AARE-2) well in Block 244a in the Tinrhert I area of the basin. Issue 184, 16 April 2010.more
Petroceltic raises $120m in share placing
Petroceltic has raised $120.5m in a conditional placing of 635.3m new shares at 12.75p/share. The proceeds will be used to support the company’s appraisal programme in Algeria and planned drilling in Italy. Issue 184, 16 April 2010.more
Windfall tax arbitrations move forward
The New York-based International Centre for Settlement of Investment Disputes (ICSID) constituted a tribunal in March to hear the arbitration claim brought by Maersk Olie Algeriet against the Peoples’ Democratic Republic of Algeria. Issue 184, 16 April 2010.more
Feuding factions call time on this round of Algeria’s anti-corruption conflicts
Following three months when little business has been transacted at Sonatrach and foreign investors have turned away, there are indications that the Algerian authorities want to mitigate the collateral damage inflicted by the anti-corruption investigation and political in-fighting, write Jon Marks, John Hamilton and correspondents in Algiers Issue 183, 26 March 2010.more
Sonatrach’s interim management settles in for the longer term
The authorities have named the management team that will carry Sonatrach into the next phase of its investment programme – and through a difficult phase when former key members of the top team are expected to face trial for corruption. Issue 183, 26 March 2010.more
Khelil takes another turn to the left amid ‘gas Opec’ talk
Recent statements by Chakib Khelil that members of the Gas Exporting Countries Forum (GECF) should reduce output to halt the decline in the spot price of natural gas point to the pressures on producers, who have seen prices slump as demand dropped and rival suppliers have come on stream. Issue 183, 26 March 2010.more
New Sonatrach regulations could break tender logjam
The introduction of fresh regulations for Sonatrach’s tendering process could release a large backlog of projects at the company within weeks. An Algerian oil services entrepreneur whose company regularly competes for Sonatrach tenders told African Energy the impact of corruption investigations meant the state company was issuing almost no invitations for expressions of interest. Issue 182, 12 March 2010.more
Challenges to Desertec threaten its ambitions
The much-hyped Desertec initiative to export solar power from North Africa to Europe faces a daunting combination of commercial, political and technological obstacles, write John Hamilton and Jon Marks Issue 181, 26 February 2010.more
Algeria’s solar development strategy
Algeria’s plans for developing more solar capacity for domestic use are advanced. Although the impact of proposed projects on total installed capacity will be slight, the targets are substantial. Issue 181, 26 February 2010.more
Khelil, Boutef at centre of Algeria’s perfect storm
Following the arrests that have savaged state hydrocarbons company Sonatrach’s senior management team, energy and mines minister Chakib Khelil stands at the centre of the ‘perfect storm’ that has engulfed Algerian politics (AE 179/1). Issue 180, 5 February 2010.more
Regulator plans industrial tariff hike to woo investors to Algerian electricity opportunities
A soon-to-be-published review will improve the prospects for new power plants and could help solve Sonelgaz’s financial problems, writes John Hamilton, recently in Algiers Issue 180, 5 February 2010.more
Vergnet to build 10MW wind farm
France’s Vergnet has announced a €24m ($33.5m) contract to build the first wind farm in Algeria. The 10MW project will be built in Adrar, southern Algeria, and should be operational in 2012. Issue 180, 5 February 2010.more
Sonatrach arrests reflect an Algerian blend of governance failings and elite in-fighting
Investigations into the business dealings of chairman Mohammed Meziane, three influential vice presidents and other senior executives point to corruption at the highest levels of Sonatrach. But this month’s dramatic crackdown may also be a symptom of political faction-fighting in the upper echelons of Algeria’s power structure – and sources suggest there is more drama to come, write Jon Marks and African Energy correspondents Issue 179, 22 January 2010.more
Corruption allegations in Algeria: a question of tendering and other irregularities
Critics argue that for all the talk of reform in the past two decades, elements of the Algerian state remain rotten at their core. Other observers say the situation has improved markedly during the Bouteflika years, and “technical irregularities” of the sort that have overwhelmed Sonatrach’s senior cadres will be quickly overcome. Issue 179, 22 January 2010.more
Busy year ahead for Algeria’s upstream gas industry
Sonatrach is in crisis, with the authorities investigating corruption allegations against chief executive Mohammed Meziane and other senior managers. Fortunately, big decisions have already been made on a number of major gas schemes, writes a Special Correspondent Issue 179, 22 January 2010.more
Petroceltic update on Aïn Tsila
Petroceltic International said testing of the AT-3 well on the Aïn Tsila gas condensate discovery had confirmed that gas at this location was in the same pressure regime as wells AT-1 and AT-2, demonstrating that the discovery extends for over 22km. Issue 179, 22 January 2010.more
Algeria receives another licensing round jolt
Algiers will come under yet more pressure to rethink its E&P strategy following another disappointing licensing round. The influence of domestic political pressures on policy-makers may mean energy professionals are limited in what they can offer, writes Jon Marks Issue 178, 12 January 2010.more
Sonatrach announces five new finds
Sonatrach ended 2009 with an announcement of five new hydrocarbons discoveries in the Berkine, Illizi and Amguid/Hassi Messaoud basins. Issue 178, 12 January 2010.more
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