Algeria's SONATRACH Plans $42 Bn Investment in Oil, Gas Sector

Algeria’s state owned energy company SONATRACH plans to invest $42 billion in the upstream oil and gas sector to bump up out in next five years, says Algeria Press Service (APS).

The company aims to reach production levels of 225 Mtoe (million tonnes of oil equivalent) in 2018, a source of company told APS Saturday.

Natural gas will be allocated more than $22 billion over the period 2014-2018.

SONATRACH has been witnessing a decline in production since 2010 and expects further investments would lead to a recovery in its hydrocarbon production by 2018.

In 2008, company’s hydrocarbon production had reached 232 Mtoe before falling to 214 Mtoe in 2010 and to 205.8 Mtoe in 2011 then to 194.5 Mtoe in 2012, APS says.

The state owned firm expects additional recovery of 400 billion cubic meters of natural gas from Hassi R'mel field.