Sonatrach suspends shale gas exploration in Algeria
Ecofin Agency January 20, 2016
In Algeria, Sonatrach, a state-owned company in charge of hydrocarbons, has just announced that it has decided to suspend its exploration of shale gas in the Ain Salah experimental fields north of the province of Tamnarasset, reports El Khabar .
According to the authorities, chis decision is explained by the plummeting, below 30 dollars, of the price of a barrel of oil which drove down shale gas prices. However, the costs of exploring shale gas are significantly higher than those of petroleum. This situation calls into question the profitability of gas exploration operations on Ain Salah.
The suspension decision will remain in force as long as the price of oil does not go back up to at least the level of 80 dollars a barrel, assure the responsible.
Nazim Zouiouèche, energy expert and former CEO of Sonatrach, stressed that the major concern of Sonatrach today is to reduce its production costs as much as possible.
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