Trade

Algeria signs deal to supply oil and other energy products to Jordan for the first time

Monday, 16 May 2016 14:21

lgeria has signed a memorandum of understanding with Jordan to supply oil and other energy products for the first time, as the country seeks to diversify its sales following years of deteriorating oil production.

According to the head of natural gas department at Jordan’s Ministry of Energy & Mineral Resources, Hasan Hiari, the deal with Sonatrach Group includes crude oil, liquefied natural gas and liquefied petroleum gas.

He said shipments is to commence this year. “This is the first time that we are going to get fuel and gas from Algeria. We have been seeking this MOU with Algeria as we are keen on diversifying our energy sources,” he said.

Algeria has, before now, invited foreign companies to help develop its oil and gas fields as Sonatrach has been trying to increase output following a corruption probe at the company as well as a deadly attack by militants on the In Amenas gas field in 2013. The country operated 55 oil rigs last month, a monthly increase since November. That same month, Algeria produced 1.1 million bopd, a little change since 2013.

Algeria is a member of the Organization of Petroleum Exporting Countries (OPEC), while Jordan has virtually no energy resources of its own. The latter is also planning solar, wind and nuclear power for its long term energy needs, Bloomberg reports.

Anita Fatunji

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