Sonatrach is offering foreign firms direct negotiations to purchase interests in 20 oil and gas fields in an effort to attract investors and boost production, a source at the company revealed.

Algeria is also currently discussing with EU officials as regards organizing a summit in Algiers in May, which will talk on energy investment opportunities in Algeria, as EU leaders are planning to diversify from Russian gas.

Under Algerian law, the stakes to be purchased are expected to leave Sonatrach the majority holder of the fields which includes oil and gas fields located in Ouargla and Adrar provinces as well as Illizi near the border of Libya, Irish Examiner reports.

Algeria, which has been hit by a 70% decline in oil prices since mid-2014, is campaigning for more foreign investment but current bidding rounds did nothing to attract much interest from foreign oil producers.

Oil executives have said that harsh terms on production sharing contracts, bureaucracy and other problems are making the country less attractive.

Aside that, security is also another factor. After the 2013 attack on the BP, Statoil In Amenas plant in which 40 oil workers died as well as the attack on the In Salah plant, the two companies on Monday said they were decreasing the number of staff in Algeria.

According to Francis Perrin, the Chairman of Strategy and Energy Policy and the Editor of OAG Africa, the attacks by the Al Qaeda Islamic militant is a way to deter foreign investors : “Al Qaeda in the Islamic Maghreb knows that it cannot occupy part of Algeria's territory as the Islamic State is doing in Syria, Iraq and Libya. But they will try to attack oil and gas facilities according to the circumstances as at In Amenas in January 2013 in order to weaken the country (as oil and gas represent 96% of Algeria's total exports), foreign oil companies and foreign countries. But it is unlikely that they will be able to inflict very significant damage. The aim of such groups is often to destroy for the sake of destruction. In terms of gains they must show that they remain relevant and able to strike various targets. They also want to deter foreign investors and, on this count, they will probably be able to score some successes,” he told Agence Ecofin.

Anita Fatunji