Hess exits Algeria

摘要

The exit of US independent Hess from Algeria’s upstream highlights the country’s struggle to maintain investment in the low oil price environment. Hess agreed the sale of its Algerian upstream assets in December. The firm will accrue less than $100mn from the deal. Hess had a 49pc stake in a joint venture with Algeria’s state-owned Sonatrach. The venture, which was formed in 2000, redeveloped the El Gassi, Agreb and Zotti fields, producing crude and associated gas. Hess had net production of 10,000 b/d of oil equivalent (boe/d) in Algeria in the fourth quarter of 2015. But less than 1pc of the company’s proven crude reserves were located in Algeria. Hess had begun scaling back its presence in the country even before the fall in oil prices, selling its 45pc stake in the Bir El Msana development project to Spain’s Cepsa in 2013.