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Politics in Algiers and Rabat are driving hugely ambitious – and arguably less than necessary – schemes to pipe gas from West Africa, supplying northern Nigeria and Niger in Algeria’s project and an array of potential markets along the proposed Moroccan route.

In another sign that Algiers is indisposed to awarding international concessions – especially to French companies – the government has decided not to renew Paris-based Suez Group’s 70/30 Société des Eaux et de l’Assainissement d’Alger (Seaal) joint venture with state water company L’Algérienne des Eaux after a 15-year partnership.

There are further doubts about the progress of major renewables schemes in Algeria – including plans to invited bids for 1GW of solar – after the high-profile energy transition and renewable energies minister Chems-Eddine Chitour was replaced by Ziane Ben Attou.

Trials of leading figures linked to the now disgraced ‘Bouteflika clan’ continue, along with former senior military and civilian officials close to the ousted regime. Prominent among them are the Kouninef brothers, Réda and Tarek, who – like many others held since Abdelaziz Bouteflika’s 2019 removal from the presidency – are in prison but continue to be summoned over other cases proceeding through the justice system.

Output from the Touat gas field remains far below expected levels, according to Groupement Touat Gaz (GTG) partner Neptune Energy, as outages that have dogged the 450 mcf/d (4.5 bcm/yr) capacity scheme since its Q3 2019 start-up continue.

Energy and mines minister Mohammed Arkab is proving one of Algerian politics’ survivors – which seemed unlikely when he was promoted into the government after years at state utility Sonelgaz.

Officials are working to persuade oil majors that Algeria is still worth investing in, with a new hydrocarbons law that may be sufficient to halt the trend towards company departures and falling output, writes Jon Marks.

The extent the Algerian oil and gas industry needs the fillip the revised hydrocarbons law is expected to offer was underlined by Sonatrach’s figures for 2020, which showed export revenue had fallen to around $20bn, 39% down on 2019. The state giant’s group performance director Mohammed Rochdi Boutaleb put the slump down to Covid-19 and the consequent sharp cut in investment.

Former Tullow Oil chief executive Paul McDade has fashioned a new company to take advantage of the changing landscape in the continent’s oil and gas sector, he tells James Gavin.

 In the wake of a diplomatic crisis involving migrant flows and the disputed Western Sahara, a recent report from Madrid suggested Morocco’s King Mohammed VI had called an end to negotiations on the extension of gas supply contracts via the 11.5 bcm/yr capacity Maghreb-Europe gas pipeline (GME).

Algeria has long been a major gas flarer but time may be running out for the practice as the EU moves to enforce its carbon border adjustment mechanism, writes Ajay Ubhi. Algeria’s consistently high level of gas flaring could start to threaten its gas export market to the Europe once the European Union’s carbon border adjustment mechanism (CBAM) comes into force.

Italy’s Eni seems gradually to be swallowing up BP’s African assets, with potential deals in Algeria and Angola building on a close relationship forged also in Egypt, Libya and Mozambique. These deals may be a sign of a deeper shake-out as European majors adapt to the demands of energy transition, writes James Gavin.

Algerian state energy company Sonatrach has committed to returning to its troubled neighbour Libya – an experience previously seen as a costly waste of time by many in Algiers. As National Oil Corporation (NOC) seeks to raise output to 1.3m b/d – and even to its pre-conflict high of 1.6m b/d – Algerian reports said the Libyan state company had asked Sonatrach to come back into Ghadames Basin Block 65, which it entered in 2005 and exited in 2014 as the security situation deteriorated.

The impact of structural reform and the energy transition is markedly different around the continent. North Africa experienced a sharp – if probably temporary – slowdown in the growth of renewables last year, when the Maghreb and Egypt accounted for 4.3GW of the 7.7GW added on the continent, including 3.1GW of new gas capacity. 

Sonatrach signed a memorandum of understanding with Norway’s Equinor on 17 May, with a headline commitment to boost co-operation in oil exploration and production and in new carbon transition sectors. Importantly, Algerian executives said they also discussed extending existing upstream contract terms beyond 2027 and securing the Norwegian major’s leading role in the In Salah and In Amenas natural gas projects.