Sonatrach plans to invest USD 50 billion through 2021
Algeria’s government-run oil company intends to increase national reserves and step up oil and gas output.
Oran, Algeria – Algeria’s state-owned oil company Sonatrach is planning to invest over USD 50 billion in exploration and production through 2021, including investments made last year, Algérie Presse Service (APS) quoted Sonatrach Exploration and Production vice president Salah Meknouche as saying this Wednesday (22).
“Despite the uncertainty surrounding global oil prices, Sonatrach’s forecasts that it will invest over USD 50 billion in exploration and production between 2016 and 2021,” the executive said in a press release.
According to APS, the investments program will rely on 70% own resources, and priorities will be widening national reserves and boosting production capacity.
The VP said the initiative is part of a new corporate dynamic. “This new dynamic is characterized by a permanent, sustained exploration and production effort,” he stated.
According to Meknouche, the cyclical nature of the oil industry shows that a slump in prices and investment is followed by a spike as supply and demand match one another, therefore the future outlook is good.
He stressed that USD 40 billion have been allocated to oil and gas field development to increase primary output levels.
Over 1,300 drillings are scheduled for 2017-20121, with production set to exceed 230 million tons of oil equivalent.
*Translated by Gabriel Pomerancblum