The Algerian state-owned oil company, Sonatrach, announced on Monday that it is holding consultations with the Libyan authorities to resume its activities in the country, stressing that its return to Libya is “absolutely necessary.”
This came in a statement by Sonatrach's CEO Toufi Hakkar, to El Djazairia Channel, that "the company is working with its partners in Libya to return to its exploration and production projects."
During the Libya Energy and Economy Summit, which was held in Tripoli on November 22-23, the company announced the resumption of the exploration and production partnership contracts with the National Oil Corporation.
A number of Algerian and Libyan officials recently discussed the possibility of resuming exploration activity, developing ways of joint cooperation and seeking the possibility of returning Sonatrach’s work in Libya by completing its contracts in the Ghadames Basin, according to a statement by the National Oil Corporation.
"The results of exploratory drilling were discussed in detail, and the final touches were put in place to prepare development plans to put them on production," the corporation said.
The Ghadames Basin includes the Al-Wafa field, the main gas supplier in western Libya. The Algerian company suspended its activity in Libya for the first time in 2011, and returned to activity in 2012, before stopping again in 2015 due to the deteriorating security situation.
In January 2018, the National Oil Corporation and Sonatrach signed an agreement under which the Algerian company will operate two areas in the Ghadames field as soon as security conditions permit.