Sonatrach will invest $40 billion over the next five years, of which 51% will be in dinars, the company’s CEO Toufik Hakkar has said.

This year will involve “growth in production and sales”, Hakkar wrote in the latest issue of Sonatrach news. The company will maintain exports above 90 million tonnes per year of oil equivalent, driven by new deposits in the southwest and southeast.

Exports in 2020 are reported to have been 82.2mn tpy.

Domestic demand will reach 70 million tpy of oil equivalent by 2024, he said.

The Sonatrach head said its dinar spending commitment reflected its focus on local content.

Describing the double crisis of COVID-19 and the price drop in 2020 as being “particularly painful”, Sonatrach’s resilience had stood it in good stead. Revenues fell in 2020 as a result of these issues, in addition to OPEC production constraints.

Algeria’s oil revenues reached $22 billion in 2020, according to Algerian Energy Minister Abdelmadjid Attar as quoted by country’s APS news service. This was down $11bn from 2019.

Attar went on to say domestic consumption of energy was increasing by 5.6% per year.

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Source: EnergyVoice