Sonatrach Partners Chinese Firm Anton on Shale Gas
Algerian state energy group Sonatrach and China's Anton Oilfield Services signed a memorandum of understanding on August 29 in Beijing. This agreement, concluded during the visit of Sonatrach's CEO, Nour Eddine Daoudi, to China, aims to identify cooperation opportunities in hydrocarbons and associated services. The collaboration specifically targets unconventional resources, marginal fields, and enhanced oil recovery.
A key objective for the Algerian side is to prepare the technical and industrial means necessary for a new phase of shale development. The protocol also outlines plans to study local manufacturing of essential equipment for oil and gas operations, facilitate technology transfer, foster expertise exchange, and strengthen capacities. Algeria has been pursuing the exploitation of its shale gas for several years, with the head of the National Hydrocarbons Agency (ALNAFT), Samir Bekhti, confirming a recentering on unconventional resources to further exploit national potential and revitalize production.
This strategic focus seeks to leverage Algeria's substantial national potential, including over 700,000 billion cubic feet of shale gas resources described by the regulator as "risk-free". Unconventional resources are also envisioned as a vital successor to maturing conventional fields, supporting the preservation of export capacities to Europe. Furthermore, increasing production is crucial for the country's gas balance, given that domestic consumption approaches current export levels. Anton Oilfield Services brings relevant expertise to this endeavor, with activities spanning oilfield technology services, including geology, drilling, completion, and well stimulation, as well as oil and gas asset management and operation.
The integration of local equipment manufacturing and technology transfer components into the protocol is central to the economic viability of such projects, as a significant portion of the equipment required for shale development is currently imported. This initiative is part of broader efforts by Sonatrach to seek partners for unconventional resources, with the group already engaging with other international companies. Anton's global experience in exploration, development, production, and surface infrastructure positions it to support Algeria's long-term energy strategy.
