Energy Minister Mohamed Arkab announced on Monday that Algeria will slash its oil production by 12,000 barrels per day, according to its latest commitment to OPEC.
Mr Arkab said upon his arrival, as a guest on the first radio channel within the program “The Guest of the Morning”, that “this share will not affect our income from hard currency or our exports in this period.”
The minister pointed out that the OPEC member states, in addition to the 12 countries participating in the 177th session of the organization, agreed on a new reduction in oil production in order to create a balance in prices that fluctuated in the past six months due to the pumping of large quantities of oil into the European market.
“The reduction will pass from 102 million barrels per day to 1.7 million barrels for OPEC member states, as well as 12 countries that are not affiliated with the organization, which is reflected in the reduction of production by 500 thousand barrels per day,” Mr. Arkab added.
The Minister of Energy emphasized that “international prices cannot be expected in the near future because everything is related to supply and demand, so supply must be controlled because the goal is to preserve the product and the consumer together. The producer must provide funds to make investments in the field of fuels to maintain a balance between Supply and demand”.
On the other hand, Mohamed Arkab explained that “Algeria’s production of hydrocarbons has not slumped in recent years, but that the new achievements are almost non-existent. Therefore, we must continue investing in Algeria in order to preserve our capabilities to produce hydrocarbons and shore up the national stock”.
Mr. Arkab went on to say that “the aim of the new hydrocarbons law is to give the opportunity and means for the national Sonatrach hydrocarbons group to carry out its research and activity in the fields of hydrocarbons and mines which is spread over one million and 500 square kilometers, stressing that if Sonatrach is to continue smoothly its activities, it must have privileges, especially with regard to the cost of research,” as he put it.