On 20 April 2020 it was reported that ExxonMobil signed a memorandum of understanding (MoU) with Sonatrach to discuss exploration and development opportunities in Algeria. ExxonMobil has shown interest in Algeria for some time (see below) and the passing of the new hydrocarbon law led the company to take a further step towards establishing operations in the country. Since 12 March 2020 Sonatrach signed another three such MoU's with Chevron, TPAO and Zarubezhneft.  The new hydrocarbon law brings developments which should make Algeria a more attractive upstream destination. The tax rate dropped from around 85% to 60-65% and three contract types are now available to an interested company: production sharing contract, joint venture contract and risk service contract.  In early October it was reported that ExxonMobil joined an industry funded study initiated by Alnaft on onshore basins in Algeria. The study is carried out by Beicip-Franlab, participants are Eni, Equinor and Total.  On 30 September 2019 it was reported that officials of ExxonMobil are in Algiers to discuss partnership opportunities with Sonatrach.  On 27 August it was reported that any new venture projects in discussion between Sonatrach and IOCâs are frozen until the political transition in Algeria is completed. Sonatrach currently deals only with day-to-day tasks to keep existing production going. The political transition is unlikely to be completed any time soon.  In late March 2019 it was reported that talks between Sonatrach and ExxonMobil were temporarily suspended due to civil unrest about the presidential election.  On 9 March 2019 it was reported that Sonatrach is holding talks with ExxonMobil in Houston. The Sonatrach delegation was led by its CEO Abdelmoumen Ould Kaddour and the ExxonMobil delegation included the Vice-President for African opportunities, David MacLean, the marketing manager Africa, Ufuoma Ewherido, the director for global opportunities, Pete Rumelhart and the director for Middle East and Africa international government relations, Rochdi Younsi. The talks centered on technical, fiscal and economic aspects of the projects proposed to ExxonMobil. Among other things, Sonatrach is proposing an unconventional gas development in the Ahnet Basin.  In June 2018 Sonatrach CEO Abdelmoumen Ould Kaddour had two meetings with ExxonMobil representatives on the sidelines of the 27th World Gas Conference which was held in Washington from 25 to 29 June. The first meeting was with Darren Woods, COE of ExxonMobil, the second one was with David MacLean, Vice-President for Africa and Brad Corson, Vice-President for upstream joint ventures.  Ould Kaddour and the ExxonMobil officials discussed concrete projects such as cluster developments of small stranded hydrocarbon discoveries. Some sources also indicated that the development of shale gas was discussed and that an agreement could be signed by the end of the year.  In February 2018, Ould Kaddour held a first round of talks with ExxonMobil during a visit to the U.S. So far, the company is not present in Algeriaâs upstream.
ExxonMobil, TPAO and Zarubezhneft each signed an MoU with Sonatrach paving the way for discussions over joint E&P opportunities in the country, taking advantage of its new hydrocarbon law. Inter alia, this includes the absence of the 51% required state participation in all foreign investment projects, and likewise the stateâs pre-emptive right in proposed sale of Algerian assets to foreign investors.