Sonatrach: signing of a new agreement with China

Sonatrach: signing of a new agreement with China

Oil is a major economic lever for Algeria and in this context the partners are carefully selected.

This Saturday, May 28, 2022, an oil sharing agreement was signed by Mohamed Slimani, Vice President of Exploration and Production at Sonatrach, and Wu Xiuli, CEO of Sinopec Overseas Oil & Gas Limited.

Also present were Minister of Energy and Mining Mohamed Arkab, Deputy Chinese Ambassador to Algeria Chen Zhong and CEO Sonatrach Toufik Hakkar.

This $ 490 million contract has a 25-year term and is fully compliant with Law 19-13. As a result, both sides intend to create an oil recovery project estimated at 95 million barrels.

Algerian Sahara Blent, where is the price?

Hydrocarbon prices have risen sharply since the beginning of the Russia-Ukraine conflict. For good reason, the restrictions applied to Russia and some countries’ fears of a shortage of supplies.

As a reminder, in March 2022, the price of a barrel reached a record since 2008, when the price of Brent crude exceeded $ 139.

This increase has not been transient, as the hydrocarbon market is doing well today and producer countries such as Algeria are still enjoying the situation. The price of the Algeria Sahara mixture has risen quite sharply.

For example, on May 6, 2022, the Algerian Sahara blend price reached $ 114.37 per barrel due to an increase of 2.90% to $ 114.37 per barrel.
This increase had an impact on economists because this level was an event: oil The price of the Algerian Sahara blend exceeded the US WTI, which was fixed at $ 110.26 per barrel.

Algeria is one of Africa’s 5 largest oil producers

As a reminder, Algeria has a good production of hydrocarbons. It should be noted that it produces an average of 959,000 barrels of oil per day, which allows it to rank fourth among producer countries in Africa.

According to the Statist, Algeria is also doing well in terms of stocks. The country is on the podium and is third with 12.2 billion barrels, although it is well and truly ahead of Libya and Nigeria.

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