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Algerian minister: 60% of hydrocarbons reserves exhausted

Crude oil pipeline
Crude oil pipeline [File photo]

Algeria’s primary reserves of hydrocarbons have fallen dramatically as a result of rising domestic and external demand (AFP)

Algeria’s primary hydrocarbon reserves have fallen dramatically as a result of rising domestic and foreign demand, following recent talk of a new hydrocarbon bill that would give non-Algerian oil companies space to explore and acquire oil ownership if discovered.

The Algerian Minister of Energy, Mohamed Arkab indicated, on Tuesday, that about 60 per cent of the primary reserves of hydrocarbons due to rising domestic consumption and export.

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In his presentation of the draft law regulating hydrocarbons activities before the Committee of Economic Affairs, Development, Industry, Trade and Planning of the National People’s Assembly, the minister added that there are several factors that “compel us to adapt the hydrocarbons law to regulations applied globally”, most notably the high internal demand for gas and petroleum products. He pointed out that this increase exceeded 7 per cent annually, which makes it a very high rate compared to the rates recorded internationally.

The minister stressed that this situation will inevitably lead to a “structural deficit in the prospects of 2025-2030 between supply and demand in the national market,” adding that “this situation will definitely affect our commitments to foreign customers with regard to prominent gas export contracts that will be renewed in 2019 and 2020.”

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