Algeria's energy group Sonatrach increases its capital
Algeria’s hydrocarbons company Sonatrach has increased its capital to 500 billion dinars from 350 billion, according to local media sources.
Algeria’s hydrocarbons company Sonatrach has increased its capital to 500 billion dinars from 350 billion, according to local media sources.
The conglomerate, Africa ‘s biggest company by revenue, obtained the additional 150 billion dinars from earnings it generated in 2006, the same sources said, quoting a resolution by the company’s general assembly.
A local newspaper commented that the increase would strengthen the ability of Sonatrach, whose single shareholder is the state, to finance projects from its own resources.
Algerian authorities recently decided to end reliance on external financing for future infrastructure work across all sectors of the economy.
To date, big oil and gas projects have mostly been funded by foreign energy firms.
In future, bankers say, the Algerian state intends to finance projects locally, in local currency.
Sonatrach plans a $46 billion programme of investments between 2008- 2012 in oil and gas exploration, production, refining and petrochemicals.
Sonatrach earned $57 billion in 2007 from producing and selling oil and gas, while the state earned a further $2 billion from a windfall tax on the earnings of foreign energy firms operating in Algeria .
Algeria pumps about 1.4 million barrels of oil per day, and exports 62 billion cubic metres a year of gas, mostly to Europe .