The Gazprom Headquarters hosted today a working meting between Alexey Miller, Chairman of the Gazprom Management Committee and Smail Chergui, Ambassador Estraordinary and Plenipotentiary of the People’s Democratic Republic of Algeria to Russia.

The meeting discussed the Russian-Algerian cooperation issues in the energy sector. In particular, the parties gave a high evaluation to the joint activities of Gazprom and the Algerian State Oil and Gas Corporation (ASOGC) Sonatrach within the previous arrangements and expressed confidence that further interaction between the companies within oil and gas projects in Algeria, Russia and third countries has a bright future.

Background:

Algeria’s proven natural gas reserves account for 4.58 trillion cubic meters (second-largest in Africa after Nigeria’s reserves – 5.15 trillion cubic meters). The bulk of the natural gas reserves is concentrated in the central and eastern parts of the country.

The country’s proven oil reserves amount to 1.58 billion tons (third-largest in Africa after Libya and Nigeria’s reserves). In the energy balance of Algeria natural gas accounts for 62.5 per cent, oil – 34.5 per cent, coal – 2.5 per cent, hydro energy – 0.5 per cent.

The Algerian State Oil and Gas Corporation Sonatrach deals with oil and natural gas exploration, transportation and marketing, controls the major part of gas production and wholesale trade.

On August 4, 2006 Gazprom and the ASOGC Sonatrach signed the Memorandum of Understanding. The document determines the following basic directions of cooperation deepening: geological exploration, production, transportation, gas transportation and distribution systems development, asset swaps, oil and natural gas processing and marketing in Algeria, Russia and third countries.

In June 2008 Gazprom opened its Representative Office in Algeria.

On December 13, 2008 Gazprom was announced the winner of the hydrocarbon exploration and development tender for the onshore area El Assel located in the Berkine Basin of the People’s Democratic Republic of Algeria.

In January 2009 Gazprom Netherlands B.V (100 per cent subsidiary of Gazprom) and ASOGC Sonatrach signed the Agreement for the transfer of rights for hydrocarbon exploration and production in the El Assel area. Gazprom will hold 49 per cent in the project.