On Thursday, Sonatrach, an Algerian Oil and Gas company, announced that it has reached an agreement with Libya’s National Oil Corporation (NOC), to resume operations in the war-torn country. General Manager, Toufik Hakkar announced the agreement during a visit to Libya.
In a statement, it said, “Sonatrach and the NOC signed a memorandum of agreement in Tripoli today, to strengthen their relationship in the oil and gas industry.”
“The MoU calls for Sonatrach’s activities in Libya to resume in order to fulfil its contractual responsibilities, and develop fields that have been discovered,” the statement read.
Sonatrach said that it will “redouble efforts for a speedy resumption” to its operations in Libya, which had halted since a surge in violence in 2014.
Sonatrach had already invested $150 million in Libya, and is expected to invest another $50 million, according to Hakkar.
NOC Chairman, Mustafa Sanalla welcomed the return of Sonatrach as an “important” partner, and reiterated his willingness to assist Algerian subsidiaries in the Libyan market.
Both parties agreed to prepare partnership programmes in various fields such as geophysics, geology, drilling, welding, and inspection.
Notably, Hakkar’s arrival to Tripoli coincided with the election of a new Prime Minister, to replace Abdel-Hamid Dbaiba. This threatens to renew a power struggle that might easily devolve into violence.
Libya has Africa’s largest proven oil reserves, although production has been disrupted several times in the last decade. This is due to the anarchy and armed conflict following the overthrow of Muammer Gaddafi in 2011.