In late November 2006, the third version of Vitality Week came about in Oran, Algeria. Worldwide corporations represented included BP, Shell, Statoil, Hess, Halliburton and Anadarko. Additionally current had been Chakib Khelil, minister of power and mines, Andris Pielbags, European commissioner for power, and Peter Mandelson, European commissioner for commerce.
Algeria’s function and fame within the power sector is gathering momentum. Certainly, with 11.8 billion barrels of confirmed petrol reserves and over 4,500 billion cubic meters of pure fuel, it’s changing into a key power participant on a world degree. Additionally, provided that a lot of Algeria stays underneath explored, one can perceive why the nation is being courted by the large gamers within the trade. Different components attracting the eye of buyers embrace the political stability and sound macroeconomic figures, with a median GDP progress above 5% over the interval 2002 to 2005.
Mohamed Meziane, CEO of Sonatrach, instructed the press that over $50 billion in hydrocarbon income has been forecasted for 2006, beating all information. In keeping with him, at the very least $30 billion can even be invested for the interval 2007 to 2011, to extend analysis, improve hydrocarbon transport and develop current fields.
Untapped potential
Sonatrach can also be eager to develop its downstream oil and fuel exercise, which might assist develop the budding petrochemical trade and provides Algeria a bigger function within the power sector. To that finish, one of many choices is to hold out the privatization of the state-owned Entreprise Nationale de l’Industrie Pétrochimique (ENIP). The modernization of refineries can also be a precedence and a possible new refinery in Tiaret is within the pipeline.
Throughout 2006, 18 oil and fuel fields had been found, demonstrating the nice potential Algeria provides whether or not in fuel or oil. In keeping with Sonatrach consultants, an estimated 40 billion barrels of oil and fuel has but to be found. Sonatrach additionally reaffirmed its will to pursue actions internationally, particularly in different African international locations. Exploration is presently underway in Libya, Niger and in Mali, the place the corporate has simply gained a contract. Future worldwide prospects embrace Mauritania, Egypt and Peru.
One other vital challenge that was mentioned in the course of the week was the trans-Saharan fuel pipeline (TSGP) which might hyperlink up Nigeria to Algeria with a 4,128km lengthy pipeline. The pipe would permit commerce and distribution of fuel primarily to the EU. This challenge, with an estimated value of $10 billion, would have the capability to distribute as much as 30 billion cubic meters of pure fuel per 12 months. Firms from France, Russia and Italy are rumored to have expressed their curiosity within the challenge. Khelil introduced that “this Lagos-Algiers pipeline would furnish fuel to Europe as of 2015, at a time when this continent has a robust must diversify and safe its power provides”. Certainly, in response to Pielbags, the EU is ready to extend its fuel provides by 50% from Algeria by 2010. At current, the EU is Algeria’s primary commerce accomplice, offering a marketplace for 54% of the nation’s exports and 54.8% of imports.
Khelil additionally took the chance to announce Algeria’s want to develop civil nuclear power to generate electrical energy. He confirmed that Algeria possessed appreciable uranium deposits and projected to make use of them to extend electrical energy manufacturing within the long-term. To dispel any fears over its use, he added that strategic partnerships with overseas companies could be solid as a way to exploit this exercise.
Amid talks of Europe’s mounting demand for power, Pielbags additionally confirmed that Algeria and the EU had been on the verge of signing a brand new fuel provide deal. Following a dialog with Khelil, Pielbags declared to the press that the EU needs to construct “robust and strategic relationships with dependable power companions equivalent to Algeria notably within the subject of fuel but additionally in renewable energies”.
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