Algeria’s Sonatrach presents a five-year investment plan worth $ 40 billion

Algeria’s state-owned oil company Sonatrach reportedly plans to invest $ 40 billion over five years through 2026.

According to a report by Agence France Presse, the company will invest the money in gas exploration and production, as well as oil exploration, production and refinement.

Sonatrach CEO Toufik Hakkar was quoted by the news agency as saying on state television: “Our investment plan between 2022 and 2026 is about 40 billion US dollars, of which 8 billion US dollars in 2022.”

Hakkar said a third of the planned investments would be in foreign companies.

“Most of this will be devoted to exploration and production to maintain our manufacturing capabilities and refining projects to meet national fuel needs,” added Hakkar.

In Algeria, the company plans to build a refinery in the country’s largest oil field and expand the Skikda refinery to convert certain derivatives into fuel.

The company is also planning to commission the fourth turbocharger for the Medgaz pipeline, which transports Algerian gas to Spain.

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Hakkar said the turbocharger will enable the company to deliver the contracted amounts of gas, estimated at 10.5 billion cubic meters, and meet the additional demand.

Algeria closed the 13.5 billion cubic meter Maghreb-Europe pipeline last year, which delivered gas to Spain and Portugal via Morocco.

As an alternative, the company is considering expanding the Medgaz pipeline into the Mediterranean.

Sonatrach also wants to resume operations in its oil projects in Libya, reported the state news agency APS.

Hakkar was quoted by state TV broadcaster AL24 News as saying the company was currently working with its Libyan partners to create safe conditions for its equipment and workers.

In 2014 the company ceased operations in the war-torn country.

Last month, Eni signed a new oil exploration and production contract with Sonatrach for the onshore basin of the Berkine Basin in Algeria.

The two companies agreed to establish an exploration and development program in the area.


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