6 August 2012 - Algeria estimates that it has as much as 25,000 trillion cubic feet (tcf) of shale gas potential and is talking about offering benefits to exploration companies. Platts reports that Sonatrach has begun to sign exploration deals with foreign majors, such ENI of Italy and Talisman of Canada. It also says Shell and ExxonMobil are expected to sign exploration deals soon.
Sonatrach CEO Abdelhamid Zerguine says that fiscal benefits will be given to foreign companies taking into account the costly investment to be made in the development of non-conventional energy and the risk of losses in exploration. "Hydrocarbon exploration is a risky area if you think that only one discovery may be made out of five fields explored. There are countries where a discovery is made in only one out of 10 blocks explored."
Algeria will offer improved terms for non-conventional energy development as part of amendments to its oil and gas law.