Led by Alexander Medvedev, Deputy Chairman of the Management Committee, a Gazprom delegation has visited Algeria within the January 19-22, 2007 visit of Viktor Khristenko, Industry & Energy Minister of the Russian Federation.

Received by Abdelaziz Belkhadem, Prime Minister of Algeria, Murad Medelci, Algerian Finance Minister, Co-Chairman of the Joint Intergovernmental Russian-Algerian Commission for Trade & Economic and Science & Technology Cooperation, the Gazprom delegation also held detailed talks with Chakib Khelil, Algerian Energy & Mining Minister.

The parties addressed the status and development prospects of the interaction between Russia and Algeria in the energy sector, and confirmed mutual aspirations to promote the relationships in this bilateral cooperation area.

The parties pointed to the significance of the joint efforts aimed at contributing to sustainable operation of the world energy markets and ensuring the global energy security.

The parties expressed their confidence to further promote the mutually beneficial and long-term cooperation between Gazprom and Sonatrach.

The Russian delegation also paid a visit to a number of Sonatrach owned production facilities.

On January 22, 2007, Algeria hosted a regular session of the Coordinating Committee between Gazprom and Sonatrach, with the Russian side headed by Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee.

The session participants highly appreciated the results of the January 2007 meetings of the Working Groups set up by the two companies with a view to identify joint projects of mutual interest. The parties decided to continue the work embracing evaluation of the commercial counteroffers and to shortly reach certain agreements.

Reference:

The second-largest in Africa after Nigeria (5 tcm), Algeria’s proven natural gas reserves account for 4.55 tcm, with the bulk situated in the country’s central and eastern parts.

The country’s proven oil reserves make up 1.5 bln t (third-largest in Africa after Libya and Nigeria).

The share of natural gas, oil, coal and hydropower in the Algerian energy mix stands at 62.5, 34.5, 2.5 and 0.5 per cent, respectively.

Algerian State Owned Petroleum Corporation Sonatrach is engaged in oil and natural gas exploration, transmission and marketing, controls the bulk of gas extraction and wholesale operations.

In 2005 Sonatrach produced 85 bcm of natural gas and supplied 21.2 bcm to domestic consumers. The company imports pipeline natural gas to Italy, Spain, Portugal, Tunisia and Slovenia, and ships LNG to France, Spain, USA, Turkey, Belgium, Italy, Greece and South Korea.

On August 4, 2006, Gazprom and Sonatrach inked a Memorandum of Understanding.

Among other things, the MoU identifies the following major directions for further joint businesses in the oil & gas sector: geological exploration, production, transmission, gas transmission and distribution network development, asset swaps, natural gas and oil processing & marketing in Algeria, Russia and third countries.