The Leipzig-based company, controlled by EnBW Baden-Wuerttemberg AG, is the first German gas trader to reach such an agreement with the North African country, said the people who asked not to be named as the business is private.
OMV had held its licence under force majeure until September this year. It declared the contractual stoppage in 2014.
The first was on increasing production at Tin Fouyé Tabankort (TFT). The two companies agreed to convert the TFT II and TFT Sud contracts to the new hydrocarbon law, which Algeria passed in December 2019.
The PSC was signed under the 2019 hydrocarbons law. Sonatrach has signed three other such deals, S&P Global has said, with Eni, Sinopec and a consortium of Occidental, Eni and TotalEnergies.
A Petrofac (LON: PFC) joint venture with China has won a $1.5bn contract for a petrochemicals plant in Algeria.
Sonatrach described the expansion project as one of its pivotal projects, which would help the company expand internationally.
“Our country has, in addition to the advantages in the energy sources from gas and oil, significant potential in the field of solar energy, a vast electricity network, and national and international natural gas transport infrastructure, as well as an industrial fabric”, he said.
The company has also hired consultants to assess Algeria’s shale and non-shale gas resources and consider its contractual terms.
Sasol and Sonatrach have teamed up to work on the production of low-carbon hydrogen and synthetic gas in Sicily.
Data from the European Union shows Algerian gas flows to Italy up 41% year on year in the third quarter of 2022.
Arkab, in a speech, said the country was indebted to those foreign and Algerian workers who had died in the attack.
It also noted that there was scope to develop hydrogen resources within the venture. There was discussion in December, during talks between Algeria and Germany, about the possibility of transporting green hydrogen via Italian links.
"For years, Honeywell neglected to implement sufficient internal accounting controls to mitigate against known corruption risks in countries like Brazil and Algeria," said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit.
Medgaz wil carry out a study in 2023 on the possibility of blending hydrogen and gas in the pipeline, which runs from Algeria to Spain.
Eni and Sonatrach have ceremonially laid the first stone for a 10 MW solar photovoltaic (PV) plant at Bir Rebaa North (BRN), in southeast Algeria.
Sonatrach has signed a new memorandum of understanding (MoU) with Sinopec, with the aim of expanding the two companies’ co-operation.
Eni has started production at two gas fields in its Berkine Sud contract in Algeria.
Sonatrach has confirmed a major construction contract with Petrofac, while moving ahead on gas negotiations with European offtakers.
Sonatrach has made an oil discovery in the Sbaa region, its first in the area for 28 years.
Petrofac (LON: PFC) has provisionally been awarded a contract for work on a major gas field onshore Algeria.
Eni has made another discovery in the Berkine North Basin, in Algeria, and it plans to fast track into production via existing facilities.
Spanish transmission operator Enagas has shrugged off disruption to Algerian gas flows via the Medgaz link.
Eni, TotalEnergies, Occidental Petroleum and Sonatrach have signed a production-sharing contract (PSC) extending control over two blocks in Algeria’s Berkine Basin.
Sonatrach has struck a deal to supply France’s Engie with gas via the Medgaz pipeline.
Repsol has exercised its pre-emption rights to buy some of departing Edison’s stake in the Reggane Nord project, in Algeria.