The President of Algeria’s state-owned energy company of Sonatrach, Toufic Hakkar announced that he plans to meet with Libyan authorities before the end of July to discuss the formal return of the company to Libya.
During a press conference on Monday, to announce the company’s performance during the first five months of this year, Hakkar stated that “Sonatrach had investments and energy explorations in Libya, but the unstable security situation in recent years forced the company to leave. There are consultations with the Libyan side for a return.”
On 4 June, Algerian Energy Minister, Mohamed Arkab confirmed Algeria’s desire to contribute and invest in the oil and gas sector in Libya and to return to complete exploration activities in previously explored areas.
Arkab’s statement came during his meeting with Libya’s Oil Minister, Mohamed Aoun, along with Libya’s OPEC Governor, Mustafa Abdalla Ben Issa, on the sidelines of the meeting of OPEC ministers.
The meeting also discussed cooperation between Libya and Algeria in shale oil, as both countries have a vast reserve of shale oil and gas that require advanced technology. These are different from those used in the production of oil and gas by traditional methods.
In March, Aoun expressed his desire for the return of Sonatrach to Libya. This came during a meeting with the Algerian Ambassador, Slimane Chenine.
Aoun stressed the importance of Algerian companies investing in Libya. He pointed out that “Sonatrach’s contracts are located in the areas adjacent to the Libyan-Algerian border, where oil operations in the Al-Wafa field have not stopped, and are considered a safe area.”
Sonatrach suspended its activities in Libya for the first time in 2011, resuming operations in 2012, before stopping again in 2015 due to the deteriorating security situation.
In January 2018, the National Oil Corporation (NOC) and Sonatrach signed an agreement that would allow the Algerian company to operate the “Ghadames” contracting area as soon as security conditions permit.
