Rachid Hachichi, the chief executive of Algeria’s national oil and gas company Sonatrach, announces plans to invest $50 billion in oil and gas projects over the next four years as part of the country’s strategy to enhance production.
Sonatrach will invest $8.8 billion in 2024 as part of the four-year investmentprogramme, which extends until the end of 2027, Hachichi told the state-run Qatar News Agency.
Under Algeria’s existing plans, 71% of the funds will be devoted to exploration and production, and 18% will be invested in petrochemical projects.
As much as 5% will be invested in gas liquefaction, and the rest will be invested in expanding the country’s pipeline network.
Hachichi recently announced a project to develop gas fields in the southwest of the country, with a production capacity of 14 million cubic metres a day, distributed across several sites.
The project will be developed across the sites of Hassi Ba Hamou, Hassi Tidjerane, and the Tinerkouk field.
Recently published figures have revealedthat Algeria’s domestic gas consumption increased by 5% in 2022 compared to 2021.
Domestic consumption used 54% of all gas produced in Algeria over the year, according to the country’s Commission for Renewable Energy and Energy Efficiency (CEREFE).
According to the analysis carried out by CEREFE, 66% of the country’s gas consumption during 2022 was used to meet the needs of households and the tertiary and agricultural sectors.
Algeria has strengthened ties with several countries in recent years to facilitate oil and gas deals.
Sonatrach signed two agreements with state-owned Petroleos de Venezuela earlier this month.
The first memorandum of understanding (MoU) focused on strengthening and promoting cooperation between the two companies in the field of energy, particularly in the exploration and production of hydrocarbons and petrochemicals.
The agreement also covered cooperation on maintenance in the oil and gas industry.
The second Memorandum of Understanding prioritises workforce training within the hydrocarbons sector. Under this agreement, the Algerian Petroleum Institute under Sonatrach will provide training for technicians and engineers from Venezuela.
