Algeria’s state-owned oil and gas company Sonatrach has revealed an ambitious plan to invest $40 billion in oil and gas exploration, production and refining. Covering a period of five years starting from 2022, the investment plan is being implemented to ensure production levels are maintained while increasing the country’s competitiveness as a hydrocarbon market in 2022 and beyond.
Group CEO Toufik Hakkar stated that “the investment plan between 2022 and 2026 is about $40 billion, including $8 billion in 2022,” adding that “The largest share will be devoted to exploration and production, to preserve our production capacities, as well as to projects in refining to meet the national demand for fuel.”
Following a successful year in 2021, whereby Sonatrach’s revenue increased by 70% due to a 19% increase in exports, the investment plan has enabled the company to refocus efforts on increasing exploration and production – both domestically and regionally in countries such as Libya.
Developments within the five-year plan include a refinery in the Hassi Messaoud oilfield; the extension of the Skikda refinery; and the commissioning of the fourth turbocompressor of the Medgaz pipeline. With one-third of the investment involving the company’s foreign partners, Sonatrach is committed to seeing Algeria into a new era of hydrocarbon growth and success.
