Algerian state energy company Sonatrach will study possible investments in oil exploration and natural gas projects in Iraq, the Iraqi oil ministry said in a statement on Jan. 7.
The statement cited comments by Iraqi Oil Minister Jabar al-Luaibi and Algerian Energy Minister Mustapha Guitouni, who arrived in Baghdad on Jan. 7.
The Algerian delegation will hold meetings with Iraqi energy companies “to achieve concrete steps toward sealing a cooperation agreement with Sonatrach,” Luaibi said, mentioning specifically projects to develop Iraq’s gas wealth.
Iraq continues to flare some of the gas extracted alongside crude oil at its fields because it lacks the facilities to process it into fuel for local consumption or exports.
Algeria is a main supplier of gas to Europe, exporting it by pipelines to the continent and also shipping it on tankers after liquefying the gas in special plants.
Guitouni expressed hope of strengthening cooperation in oil exploration and natural gas, the Iraqi ministry statement said.
Iraq is the OPEC’s second-largest crude producer behind Saudi Arabia, with output of 4.4 million barrels per day (MMbbl/d). Fellow OPEC member Algeria has estimated output of 1 MMbbl/d.
Recommended Reading
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
Diamondback Energy to Acquire Permian’s Endeavor for $26B
2024-02-11 - Diamondback Energy will acquire Endeavor Energy in a cash-and-stock agreement that will create a Permian juggernaut with a combined value of more than $52 billion in a merger of near equals.
Is Double Eagle IV the Most Coveted PE-backed Permian E&P Left?
2024-04-22 - Double Eagle IV is quietly adding leases and drilling new oil wells in core parts of the Midland Basin. After a historic run of corporate consolidation, is it the most attractive private equity-backed E&P still standing in the Permian Basin?
Civitas, Prioritizing Permian, Jettisons Non-core Colorado Assets
2024-02-27 - After plowing nearly $7 billion into Permian Basin M&A last year, Civitas Resources is selling off non-core acreage from its legacy position in Colorado as part of a $300 million divestiture goal.
Which Haynesville E&Ps Might Bid for Tellurian’s Upstream Assets?
2024-02-12 - As Haynesville E&Ps look to add scale and get ahead of growing LNG export capacity, Tellurian’s Louisiana assets are expected to fetch strong competition, according to Energy Advisors Group.