Algeria Ratifies Oil and Gas Cooperation Agreement with Azerbaijan

Algiers, The Gulf Observer: President of Algeria, Abdelmadjid Tebboune, has ratified a Memorandum of Understanding (MoU) between the governments of Algeria and Azerbaijan aimed at strengthening cooperation in the oil and gas sector and expanding collaboration in emerging energy fields.

The agreement, signed on November 29, 2022, establishes a comprehensive framework for bilateral cooperation across the hydrocarbons industry, including oil, natural gas, petrochemicals, and green-energy projects.

Under the memorandum, both countries will work together on regulatory and legal policies governing hydrocarbon activities, as well as upstream oil and gas exploration and production projects onshore and offshore. The accord also covers cooperation in petrochemical industries, energy transportation and distribution networks, and the marketing and commercialization of petroleum products, including naphtha and liquefied natural gas (LNG).

A key component of the agreement provides for long-term supplies of Azerbaijani crude oil and other petroleum products from SOCAR to Sonatrach Raffineria Italiana, strengthening commercial energy ties between the two nations.

The partnership further extends to renewable and green-energy initiatives, particularly hydrogen production and transportation infrastructure. The two sides also plan to collaborate in research and development, sector governance, energy infrastructure projects, and human-capital development through training and capacity-building programmes.

The memorandum will remain in force for an initial period of five years and will be automatically renewed unless either party formally withdraws from the agreement.

The ratification by Algeria follows earlier approval by Azerbaijan. On February 1, 2023, President of Azerbaijan, Ilham Aliyev, signed a decree approving the memorandum, paving the way for its implementation.

The agreement reflects the growing strategic energy partnership between Algeria and Azerbaijan and highlights both countries’ commitment to expanding cooperation in traditional hydrocarbons while exploring opportunities in the global energy transition.