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Algeria's Sonatrach to Share Production in a Region in Niger

The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers. (Reuters)
The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers. (Reuters)
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Algeria's Sonatrach to Share Production in a Region in Niger

The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers. (Reuters)
The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers. (Reuters)

Algeria's Sonatrach oil company said it had signed an agreement with the Niger petroleum ministry to share production in Niger's Kafra region, according to a Sonatrach statement.

Sonatrach International Petroleum Exploration and Production, a subsidiary of the Algerian company, signed the agreement in Niger's capital.

Sonatrach's works in Kafra cover two exploration wells, with proven oil reserves of 168 million barrels and 400 million barrels.

In a related context, Algeria has agreed to resume operations in Libya, the chief executive of Sonatrach said.

The company is currently working with its partners in Libya to create safe conditions for its workers and equipment, Sonatrach's CEO Toufik Hakkar said.

Visits to Libya are planned before the end of February to negotiate Sonatrach's return, he added.

According to the weekly energy newsletter Middle East Economic Survey (MEES), Sonatrach was forced to abandon its exploration activities on the Libyan side of the Algeria-Libya border in 2014 due to the deteriorating security situation.

Sonatrach had made "a number of promising discoveries" up until that point, MEES reported in May.

Hakkar added that Sonatrach also intends to invest an estimated $40 billion in its energy sector between 2022 and 2026. "The largest share of these investments will be directed to exploration and production in order to maintain national production capabilities," Hakkar said.

Around 95 percent of the North African state's foreign revenues are from oil and gas sales.

In 2021, the state-oil firm exported hydrocarbons worth more than $34.5 billion, a 70 percent increase from the previous year, Hakkar added.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.