News

Sonatrach to invest USD 73 billion by 2020

24 de maio de 2016

Algiers – The Algerian state-owned oil company Sonatrach will invest over USD 73 billion by 2020, the country’s minister of Energy Salah Khebri said this Tuesday (24th). “Sonatrach’s investment schedule from 2016 to 2020 is in excess of USD 73 billion, two thirds of which will go into exploration and production,” the minister stated.

He stressed that the country is determined to stick to its development strategy for exploration and production in spite of falling oil prices.

According to the minister, as a result of domestic consumption and foreign demand growth projections, Algeria is investing in exploration in order to broaden its pool of available resources and diversify the product mix offered by its oil industry.

Khebri made the statements during the Algeria-European Union Business Forum on Energy in Algiers. The event was attended by the European Climate Action and Energy commissioner Miguel Arias Cañete and delegates from 700 companies, 200 of which are European.

According to him, Sonatrach and its partners invested USD 100 billion from 2000 to 2015. Hydrocarbons production (oil and gas) reached 200 billion tons of petroleum equivalent (TPE) in 2015 and is expected to reach 241 million TPEs in 2020.

The minister added that production will increase as a result of exploration of new reserves and improvement of recovery rates for existing reserves.

*Translated by Gabriel Pomerancblum