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The reshuffle to Prime Minister Abdelaziz Djerrad’s government, ordered by President Abdelmadjid Tebboune on 23 June, maintained senior ministers in key posts, but was most notable in its efforts to turn around a fast-deteriorating economic situation by replacing the finance minister, splitting the energy ministry into two and restoring the mines ministry. Former energy minister Mohamed Arkab moved to head a new Ministry of Mines in changes that brought in Sonatrach veteran Abdelmadjid Attar as energy minister, with a brief to stabilise the domestic oil and gas industry and raise Algeria’s voice in global markets.

Following concessions on the pricing of Algerian gas taken by Tunisia through the Trans-Mediterranean Gas Pipeline, Sonatrach and Société Tunisienne d’Electricité et de Gaz (Steg) have agreed to renew their offtake agreement through to 2027, with a possible extension of the contract to 2029. Unlike recent agreements with European clients, which have involved lower liftings, Sonatrach on 17 June said the draft agreement anticipated a 20% rise in the contracted volumes to be taken from 2025, “with a view to securing the expected increase in consumption in this strategic market”.

Sonatrach has announced that with its partners, Thailand’s PTT Exploration and Production (PTTEP) and PetroVietnam Exploration Production Corporation (PVEP), it has signed an engineering, procurement and construction contract with Italy’s Maire Tecnimont for the Bir Sebaa Phase II and Mouiat Outlad Messaoud (MOM) field development project. Sonatrach estimated the contract – which has been expected since 2016 – at $400m, with work due to take 40 months from an unspecified start date.

Sonatrach cannot consider coronavirus as an acceptable basis for Spanish gas buyer Naturgy Energy Group to lower prices and declare force majeure on its imports from Algeria, energy minister Mohamed Arkab told parliament’s finance and budget committee on 17 June. The official Algérie Presse Service quoted Arkab as saying the global health crisis was not a reason to invoke force majeure, as nowhere had the lockdown stopped power stations from operating.

Texts essential to the new hydrocarbons law coming fully into force are ready for presentation to the council of ministers and two chambers of parliament, energy minister Mohammed Arkab told parliament’s finance and budget committee on 17 June. This is expected to allow the regulator Agence Nationale pour la Valorisation des Ressources en Hydrocarbures (Alnaft) to announce a fifth licensing round, on what Algiers believes are much better terms than in previous rounds.

Concerns are rising about Algeria’s ability to finance major projects from its fast-diminishing foreign reserves, but state energy giant Sonatrach continues to make strategic investments, on 30 May completing the purchase of 8.04% of the Medgaz pipeline company’s equity. The purchase from Abu Dhabi state investment fund Mubadala gives Sonatrach a 51% majority stake in the 8.2bcm/yr pipeline running to Spain, which started operation in 2011 and is slated for further expansion, market conditions permitting.

Algeria has won what may prove a pyrrhic victory by blocking Total’s takeover of some of its most strategically important oil fields and forcing Anadarko Petroleum Corporation’s new owner, Occidental Petroleum Corporation, to retain an investment that it did not want but which at least can generate considerable income. Having agreed to maintain operations under the old Anadarko Algeria Corporation name, Occidental president and chief executive Vicki Hollub on 6 May called Algeria a “core asset” – albeit one that could potentially be sold “if we got an incoming offer for Algeria that was something that we couldn’t refuse”.

The Algerian authorities are maintaining their business-as-usual approach, with more appointments to senior roles in the hydrocarbons industry and agreements in principle to undertake cooperation with IOCs, including ExxonMobil. But the outlook remains difficult, with state energy giant Sonatrach already barely able to produce the much lower amount of crude expected under its new Opec+ quota, of 816,000 b/d for May and June delivery.

As Sonatrach tackles the impact of Covid-19 and slumping oil prices, chairman and chief executive (PDG) Toufik Hakkar on 30 March continued his reorganisation of senior managers, with the appointment of eight new vice-presidents. Critics have questioned the credentials of several of the newVPs, pointing out that the moves could give Hakkar greater control over key departments. Few of the new VPs have a high profile. Only one VP, Fethi Arabi, maintains his old post; the rest have been promoted. Sonatrach’s VPs are now as follows:

Algeria’s compliance with the Covid-19 lockdown was sharply illustrated when on 20 March the Hirak opposition movement did not march against the government for the first Friday since 22 February 2019. President Abdelmadjid Tebboune on 17 March announced a ban on public gatherings, including an end to prayers in mosques as well as mass demonstrations.

Energy minister Mohamed Arkab has been trying to give a sense of dynamism across the Algerian industry, if not always convincingly. While decisions on much-anticipated tenders have dragged on – or have disappointed – it was something of a surprise when Arkab announced that Algeria was involved in a move to revive the Desertec Energy Initiative as a means of substantially increasing solar power production.

Sonatrach chairman and chief executive (PDG) Toufik Hakkar on 12 March appointed a number of new senior managers. The company said the changes were intended to “revitalise the functioning of those structures concerned”. The appointments, including a number of women, are:

Eni on 2 March announced the completion of a gas pipeline connecting the Bir Rebaa Nord (BRN) and Menzel Ledjmet Est fields in the Berkine Basin. The 185km, 16-inch pipeline has a transport capacity of 247mcf/d. It will also allow for the gathering and export of associated gas produced in Block 403 from Eni’s BRN and Bir Rebaa South West fields, as well as the development of new gas fields in three North Berkine blocks.

Heads have rolled again at Sonatrach, where Kamel Eddine Chikhi was replaced as chairman and chief executive (PDG) on 5 February by vice-president for development and marketing Toufik Hakkar. PDG only since 18 November, Chikhi is a highly experienced Sonatrach exploration and production executive, well versed in pitching opportunities to IOCs, as he did in London recently. There have been rumours he was undermined by powerful rivals in the administration.

Even before the death on 23 December of deputy defence minister and chief of staff Ahmed Gaïd Salah, major political issues remained to be resolved before Algeria could reasonably look forward to a stable future. The Hirak protest movement, which has been active since last February – removing enfeebled president Abdelaziz Bouteflika in April – continues to call for root-and-branch political change during weekly mass demonstrations. Abdelmadjid Tebboune was elected president on 12 December; he has appointed a new government under a little-known prime minister, Abdelaziz Djerad, which includes many familiar faces, including energy minister Mohamed Arkab.