In a recent statement, Ahmed El-Hachemi Mazighi, Vice-President of Marketing at Sonatrach, emphasized that exporting hydrocarbons, including gas, is not done free of charge. According to Mazighi, any export from Algeria requires a customs declaration with a specified volume and price. He stressed that without this declaration, no export can take place. This policy applies to all hydrocarbon exports, including those to France.
Mazighi explained that there have been exceptions to this rule, specifically in 2004 and 2018. In 2004, Sonatrach temporarily exported crude oil to storage facilities in Korea with a temporary invoice. In 2018, the company began processing crude oil, transferring ownership to clients and accounting for importation of refined products. However, these exceptions do not apply to current export practices.
Regarding natural gas exports, Mazighi assured that the company's policies are well-established. He questioned the likelihood of approving a contract with a price of zero, stating that such a scenario has never occurred. This reaffirmation aims to clarify Sonatrach's stance on gas exports, particularly in light of speculation about potential free exports to France.
Mazighi also addressed Sonatrach's relationships with its partners, including ExxonMobil. He stated that discussions with partners are ongoing and framed by confidentiality agreements. While the company cannot provide regular updates on negotiations, it will inform the public if there are any significant changes or suspensions.
The company has experienced a decline in hydrocarbon exports in January, attributed to various factors, including weather conditions and reduced demand. Mazighi noted that bad weather led to port closures, causing shipments to be delayed until February. This delay impacted export figures for the month.
The decrease in gas exports via pipeline during the first two months of the year is attributed to lower demand from European clients. Mazighi stated that 95% of Sonatrach's gas exports are destined for the European market. The company is working to adapt to changing market conditions and client needs.
Sonatrach's export policies and relationships with partners remain a priority for the company. As the national oil and gas company of Algeria, Sonatrach plays a significant role in the country's economy. Clarifying its export practices and policies aims to maintain transparency and trust with stakeholders.
Key points
- Sonatrach's VP of Marketing emphasizes that all hydrocarbon exports require a customs declaration with a specified volume and price.
- The company has experienced a decline in hydrocarbon exports due to weather conditions and reduced demand.
- Sonatrach's gas exports are primarily destined for the European market, with demand fluctuations impacting export figures.
