17 Apr 2020 09:24

Zarubezhneft considering several oil projects in Algeria

MOSCOW. April 17 (Interfax) - Zarubezhneft is studying several oil projects in Algeria, the Russian state oil company told Interfax.

Zarubezhneft said it has held several rounds of negotiations with Algerian state company Sonatrach. "It's still the initial stage. Several oil blocks were proposed. We're studying their prospectivity," the Russian company said.

Sonatrach said on Thursday that it has signed a memorandum of understanding with Zarubezhneft to cooperate in Algeria's extractive industry. Sonatrach signed a similar document with Turkish Petroleum Corporation (TPAO).

These two agreements will make it possible to start joint discussions on opportunities for exploration, development and production of hydrocarbons in Algeria, particularly after the passage of the new Algerian law on hydrocarbons, Sonatrach said.

Algeria has promised to expand geological exploration with international partners after the passage of a new law on hydrocarbons in January that offers a more favourable tax regime for potential investors.

Russia's Energy Ministry said at the end of 2019 that Zarubezhneft was interested in working with Algeria. "Zarubezhneft is offering its services to increase the efficiency of existing fields. They are specialists in this regard. Export technology is often sold by Zarubezhneft now, so they are discussing increasing oil recovery rates at existing fields," Energy Minister Alexander Novak said at the time.