L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

which were to be operated by Algerian specialists. When in 1966
Algeria nationalized its mining industry and foreign specialists began
to leave the country, Soviet geologists rendered assistance to
Algeria in organizing the SONARM (Société Nationale de Recherche
et d ’ Exploitation des Ressources Minières). Later, the Algerian
government set up the Central Geological Base with chemical, spectral
and mineral-petrographic laboratories equipped with Sovietmade
equipment. 42
After the break up of the Soviet Union, the assistance to Algeria
in the oil and gas industry has been provided in prospecting for new
deposits, projecting their development, drilling wells and supervising
survey.
The Algerian company SONATRACH signed an agreement in
August 2007 with Gazprom Netherlands, a Gazprom subsidiary, to
transfer the rights to explore and produce hydrocarbons in the El
Assel area of the Berkine Basin. Gazprom holds a 49% share in the
project. The area covers 3083 square kilometers. This came to be
Gazprom's first hydrocarbon exploration and production project in
Algeria. The partnership deal is wide-ranging. It covers the LNG
business, "upstream asset swaps", and joint bidding for E&P and
downstream assets in third countries.
In 2007, the term of the Memorandum of understanding between
GAZPROM and SONATRACH expired, removing important legal
support from cooperation in oil and gas extraction and production of
liquid natural gas (LNG). Certain difficulties emerged in the course
of interaction of SONATRACH and LUKOIL.
However, in 2009, Gazprom expressed interest in participating
in the construction of a gas pipeline across the Sahara Desert that is
due to link Nigeria and Western Europe and to cross Niger and Algeria.
The estimated cost of building the 4128-km pipeline is $13
billion. It is scheduled for completion in 2015.
It appears that the potential for cooperation with Algeria to define
a common international market policy on natural gas has not yet
been fully realized. In this regard, it is worth noting that in early
2009 Algeria supported Moscow in its gas dispute with Kiev. At the
time, Algeria's Minister of Energy and Mining, Chakib Khelil, found
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