• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 2 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 19 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 6 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 2 hours Will Uncle Sam Step Up and Cut Production
  • 6 hours 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 7 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 12 mins With Global Warming Greenland is Prime Real Estate
  • 10 mins Sad . . . Only thing that moves oil price up is an attack on Tankers or Oil Facilities (Staged or real?)
  • 1 day Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 8 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 11 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 2 days NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day US Petroleum Demand Strongest Since 2007
Alt Text

Oil Prices Crash On Recession Fears

Oil prices fell sharply on…

Alt Text

The Fastest Growing Energy Producer In The World

Production growth is a key…

Alt Text

Gibraltar Releases Iranian Tanker

The authorities of Gibraltar have…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Exxon Shale Deal With Algeria Falls Victim To Protests

Exxon’s negotiations with Algeria for the development of local shale gas resources are being delayed because of the widespread anti-government protests in the North American country, Reuters reported this week, citing industry sources.

The news is no surprise as it comes on the heels of other media reports that energy companies are getting nervous about their Algerian plans as the protests show no sign of subsiding despite the fact long-term president Abdelaziz Bouteflika dropped his plan to run for a fifth term in office this year. They even intensified after Bouteflika pulled out of the race—a fact that does not bode well for the near-term future of the Algerian energy industry.

Oil and gas companies, like any other business, like stability. They like to do business in places where the risk of field blockades and pipeline bombings is manageable. Nigeria is an obvious exception, but its oil wealth seems to have tipped the scales in favor of the industry staying there and swallowing whatever militants throw their way.

Yet the Algeria case is different. While Big Oil has been in Nigeria for decades and cannot simply up and leave because people are bombing pipelines, Algeria is a new frontier, especially in natural gas.

The North African country is home to the world’s third-largest shale gas reserves, estimated at some 2,000 trillion cu ft, according to the Algerian government. Algeria is already an important gas supplier to Europe and is looking to increase its market share there. But there is a problem. Related: U.S. ‘’Oil Weapon’’ Could Change Geopolitics Forever

The country’s shale gas fields are concentrated in the south, where the population is against gas exploration. Development plans for the area were already stopped once by local protests last year, but Sonatrach, the state energy company, pledged to continue seeking ways to convince the local community leaders that the plans will benefit them. This hasn’t happened so far, and with the protests gaining traction, the situation looks even worse than it did last year.

For now, the suspension of the talks is only temporary, so not all hope is lost. Yet it will certainly delay Sonatrach’s modernization plans as part of which it bought an Exxon refinery in Italy last year, forging closer ties with the supermajor. These ties are part of efforts on the part of the Algerian company to attract desperately needed foreign investment as it lacks the resources and expertise to develop its oil and gas reserves as successfully. Now, the protests have thrown a wrench in these plans.

And there’s more. The protests aim to remove Bouteflika from power along with everyone from the ruling elite and replace it with new people. Sonatrach’s chief, Ould Kadour, who has led efforts to attract new foreign investment into Algerian oil and gas, is a member of Bouteflika’s circle.

“The minute Bouteflika would leave power, Ould Kaddour would be sacked,” Reuters quoted an Algerian source as saying. This adds another vector of uncertainty for Exxon and other companies with plans for Algeria. It means they will likely stop what they’re doing there and wait to see what happens next, which is anyone’s guess at this point. The peaceful nature of the protests so far and the security forces’ restraint is a good sign, however, suggesting that the situation may not deteriorate further, which would be good news all around.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • tatia kara on March 23 2019 said:
    as an algerian I would like to assure you that algerians are more concerned than any one about the well being of their country and it is a common belief that stability in algeria is for the best of not only algeria and africa but the world as a whole since we are all close or far neighbors. and rest assured with or without the current leaders it is the utmost priority for algerians to build a prosperous future for our economy and stability if we move we will only move forward for the sake of a stable and better world.
    thanks for your concern and interest

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play