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Ould Kaddour: Algeria has no intention to stop supplying Morocco with gas

Sonatrach's General Manager denied having the intention to cut off the supply of gas to the Kingdom of Morocco through the pipeline crossing its territory toward Spain. He confirmed that keeping the status quo is in Sonatrach's best interest as maintaining the gas flow via this pipeline maximises the company's export capacities.

Speaking at a press conference held on the sidelines of OPEC's World Oil Outlook report 2040, Abdulmouen Ould Kaddour said that Sonatrach's launch of a pipeline project to bring additional capacity to the Medgaz pipeline from the Pedro Dural Faral gas pipeline, which runs through Morocco in Arishah area of Tlemcen, caused a misunderstanding among some parties.

According to Ould Kaddour, some parties have deduced that Sonatrach wants to cut Morocco's supply of gas passing through the Spain-directed pipeline "Why would we cut supplies on this pipeline?," Ould Kaddour wondered. He asserted that it is in Sonatrach's interest to preserve the flow of gas through this pipeline to increase export capabilities." He added: "Continuing to supply this pipeline with gas is convenient for Algeria, only if Moroccans want to shut the pipeline down. In that case, it should be their problem, not ours."

$80 per barrel, a convenient price

Ould Kaddour commented on oil price, which exceeded $80 a barrel, and stressed that this price is appropriate for producers and consumers, and allows manufacturers to launch more investments.

According to Sonatrach's General Manager, pricing oil for $40 per barrel is as much harmful to producers and curbs the pace of investments as buying it for $ 140, which is not in favour of the consumers and leads to a waste in expenses.

Read: Portugal, Spain, France agree to take in Aquarius migrants

Ould Kaddour considers that Algeria played an essential role in stabilising the oil market through the 2016 meeting and its historic agreement, in addition to the conference held on September 23.

First oil explorations in the sea at the beginning of next year

Ould Kaddour revealed that the first drilling operation for oil at sea would take place at the beginning of 2019. He declared that the studies indicated promising results and significant oil reserves in the Algerian territorial waters.

Sonatrach conducted studies in two maritime areas, the first in the marine zone separating Jijel and Bejaia, extending in the future to Collo, and the second at the western waterfront between Oran and Ain Temouchent.

He believes that Shale gas is Allah's gift to Algeria and the day will come when the Algerian authorities l exploit these resources, the world's third largest reserve. Ould Kaddour also indicated that the exploitation of Shale gas is a complex process that will take several years, specifically from 3 to 5 years. He deduced that the best way to extract such reserves is to engage in partnerships with knowledgeable and experienced companies, to reduce expenses and gain time.

OPEC: Another 20 golden years for the oil market

On the other hand, the Organization of Petroleum Exporting Countries (OPEC) presented a report on World Oil Outlook in 2040 at the Sonatrach headquarters. The report revealed that the oil market would witness another 20 golden years since the global demand for crude oil will increase by 15 million barrels per day.

According to the report, the slowdown in global demand for oil will take place during the period between 2020 and 2023, mainly because of the International Maritime Organization's resolutions which will be implemented concerning the reduction of emissions from shipping ships across the world.

The global demand for oil will reach 111.7 million barrels per day in 2040, an increase of 14.5 million barrels per day from current levels. China and India will continue to consume more crude oil as a result of population growth and the rising pace of both countries' economies.

READ: Trump sets implied oil price target below $80 

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