Sonatrach Inks MoU with ExxonMobil

Algeria's national oil and gas firm Sonatrach has signed a memorandum of understanding (MoU) with ExxonMobil on potential joint activities in the country's upstream sector, it said on April 20, shortly after reaching similar agreements with Russia's Zarubezhneft and Turkey's TPAO.

A month ago Sonatrach also signed an MoU with Chevron. The Algerian company used its latest statement to again draw attention to the merits of its new hydrocarbon law, which came into force in January. The law has reduced the tax burden for subsoil users by over 20%, it said.

Algeria is seeking international investors to help revitalise its oil and gas industry and reverse declining production. But attracting partners in the current market will prove difficult. Many oil and gas companies have cut most, if not all discretionary capital spending to weather the industry's crisis.