Khebri: “Two-thirds of Algeria's revenues stem from gas exports”

The Energy Minister, Salah Khebri, foresees a gradual hike in domestic production of hydrocarbons, in oil equivalent, to reach 241 million tonnes in 2020, in the light of Algeria’s big investments of about 73.5 billion dollars, during this five-year plan.

The minister added that the total production of hydrocarbons, in oil equivalent, in 2004 was set at 225 million tonnes before rising to the highest level to reach 233 million tonnes in 2007 and then began to plummet from 2008 to its lowest level in 2013, to over 186 million tonnes before going upwards.

Mr Salah Khebri also that the country’s hydrocarbons production is expected to reach 197 million tonnes in 2016, 210 million tonnes in 2017, 215 million tonnes in 2018, 225 million tonnes in 2019 and 241 million tonnes in 2020.

In addition, the Energy Minister indicated that two-thirds of revenues stem from gas exports and that any drop in gas production would dent the country’s incomes.

Against a backdrop of a severe slide in oil prices, national energy company Sonatrach is reportedly shifting its strategy to offer foreign firms direct negotiations to buy stakes in 20 oil and gas fields in a bid to attract investors and increase hydrocarbon output.

Algeria, a key gas supplier to Europe, is also in talks with European Union officials on holding a summit in Algiers in May that will examine energy investment opportunities in Algeria as EU leaders look to diversify from Russian gas supplies.

The switch to bilateral deals follows two energy bidding tenders that failed to attract much interest. A bid scheduled for last year was rescinded because of plummeting crude prices.

“Direct negotiations are a more efficient, less expensive, a faster, and a less red-tape approach,” a Sonatrach source said of the talks. “Sonatrach is already in negotiations with ENI and several other foreign firms.”

The 20 fields, which the source said Sonatrach took over from state hydrocarbons agency ALNAFT in September as part of the streamlining process, include oil and gas fields across the centre and south of the country in places such as Ouargla and Adrar provinces, and Illizi near the Libyan border.

As part of the investment-oriented campaign, Sonatrach CEO Amine Mazouzi is slated to travel to China by the end of the month for exploratory meetings with senior executives of Chinese oil companies notably “SINOPEC” and “CNPC”, which are already operating in Algeria.