Algeria’s oil and gas sector has found itself thrust into the middle of the country’s political succession process, ahead of crucial presidential elections in 2019. As declining oil and gas production and lower global oil prices impact state revenues, Algiers is under severe pressure to reform the sector and attract new oil company investment after four failed bid licensing rounds since 2008.
- Algeria’s main economic driver – the hydrocarbons sector - is under pressure to deliver political results for the ruling faction under President Bouteflika. But can a highly resource nationalist state like Algeria prove flexible enough to adapt its fiscal terms and attract international oil companies?
- There are signs from state Sonatrach that its new management is attempting change and the return of former Oil Minister Chakib Khelil could mean more political backing for wider reform.
- Algeria’s conventional oil and gas reserves may be declining but the country is blessed with the world’s third largest shale gas reserves of some 707 trillion cubic feet of technically recoverable resources which has excited the attention of oil majors who have already invested in the country.