Algeria wants to do business with Moscow

RussNeft, one of the most rapidly growing oil companies of Russia, is ready to invest its money, operational experience and the workmanship of its specialists in production of crude oil in Algeria. The statement was made at the meeting of the Russian-Algerian Business Council (RABC) held in Algiers. The investments in crude oil production will be the biggest Russian private-business funding of the economy of this Northern African country.
According to RussNeft President Mikhail Gutseriev, the Co-Chairman of the Council on the part of Russia, the economic reforms and stable political climate in Algeria have created a favourable environment for recovering the connections between the two countries. In the past Algeria was one of the closest partners of our country. However, in the course of time the close bilateral connections came to naught which can be accounted for by the economic difficulties in both countries and the civil war in Algeria.
Presently the war in Algeria is over, and the reforms have given impetus to the economy. The authorities are welcoming foreign investments in the oil industry. By the end of this year they will invite six tenders for the right to develop oil and gas fields. The new law on hydrocarbon fields offers foreign companies a chance to participate in tenders along with Algerian firms on equal terms and allows access to transmission pipelines. 
According to Gutseriev, in the nearest month and a half RussNeft will establish a company in Algeria together with Algerian partners and will take part in the tenders to acquire one or two fields (which maybe either one big field or two smaller ones). At the initial stage of exploration and construction of field facilities the company plans to invest at least $100 million. Later on more investments will be required.
RussNeft is actively stepping up its upstream sector acquiring new oilfields. By the end of the year the company plans to raise its annual crude oil production from 17 million tons currently to 20-25 million tons. But for all that, apart from Algeria RussNeft will make investments in the oil sectors of Azerbaijan, Kazakhstan and Mauritania.
Gutseriev assumes that currently after the terrorists have been defeated the    situation in Algeria is quite peaceful, on the whole, and there is no political risk for Russian business in the country.
Russian RABC-member companies are showing growing interest in doing business in this country and establishing contacts with Algerian companies.
Algerian Co-Chairman of RABC Kamel Abdelrahim referred to the current situation as “a new stage in the economic ties between Algeria and Russia.” According to him, the current privatization of state-run companies in Algeria is very favourable for Russian business. The initial plan of the government is to render private some 1300 enterprises. So far only one third of then has been privatized. The Algerian businessman assumes that apart from oil and gas sector, house building and tourism are very promising for Russian companies.
The meeting of RABC approved the statute of the business body of the two countries, held negotiations on establishing contacts between particular organizations aimed at the implementation of joint projects. The conferees also agreed that the Algerian party would pass on to its Russian partners the list of enterprises whose assets might be bought by Russian companies.