Algeria Enters World of Offshore Drilling in 2019

FILE PHOTO: View of the headquarters of the state energy company Sonatrach in Algiers, Algeria June 26, 2016. REUTERS/Ramzi Boudia/File Photo
FILE PHOTO: View of the headquarters of the state energy company Sonatrach in Algiers, Algeria June 26, 2016. REUTERS/Ramzi Boudia/File Photo
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Algeria Enters World of Offshore Drilling in 2019

FILE PHOTO: View of the headquarters of the state energy company Sonatrach in Algiers, Algeria June 26, 2016. REUTERS/Ramzi Boudia/File Photo
FILE PHOTO: View of the headquarters of the state energy company Sonatrach in Algiers, Algeria June 26, 2016. REUTERS/Ramzi Boudia/File Photo

Algeria’s state-owned oil and gas company Sonatrach will launch offshore drilling with France’s Total and Italy’s ENI on two sites in the east and west of Algeria at the start of 2019, its chief executive, Abdelmoumene Ould Kaddour, said on Sunday.

“We should start drilling at the beginning of next year,” Ould Kaddour told reporters on the sidelines of a signing ceremony with Total for a petrochemical plant that will produce 550,000 tons of polypropylene per year.

“The potential is huge. We have gas in the east around Skikda, and oil in the west around Mostaganem,” he added.

Sonatrach and Total have also agreed to invest $406 million to boost the output of the gas field named Tin Fouye Tabankort Sud.

“Our partnership with Total is good and it allows us to implement our long term strategy,” Ould Kaddour told reporters.

Total said in a separate statement that it has signed new agreements with Sonatrach, including a contract to develop the Erg Issouane gas field and plans to create a joint venture.

“Today’s agreements mark a new milestone in the development of the strategic partnership between Sonatrach and Total to continue developing the country’s gas reserves by providing the best of our technological expertise,” Total Chairman and Chief Executive Patrick Pouyanné said in the statement.

Sonatrach and Total will develop the reserves of Erg Issouane, located on the TFT Sud permit in Algeria, estimated at more than 100 million barrels of oil equivalent.



China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.