Econostrum | Economic News in the Mediterranean



Sonatrach will invest $40 bn over five years

Sonatrach is the first hydrocarbon group in Africa (photo: Sonatrach)
Sonatrach is the first hydrocarbon group in Africa (photo: Sonatrach)
ALGERIA. The Algerian group Sonatrach announced on Thursday, December 30, 2020, an investment programme over five years. Endowed with $ 40 billion, 51% of which in dinars, it provides for the production and the increase in production rate of several deposits.

In a press release published on Friday, December 31, 2020, its CEO, Toufik Hakkar, said that "production and sales will grow in 2021, thanks to the production of the peripheral deposits of Gassi Touil and Hassi Bir Rekaiz as well as the increase in production rate at Tinrhert and the completion of the Hassi R'Mel Boosting for the northern zone".

He insists on "the tangible will of Sonatrach to be part of an integrative approach of national companies in the realization of its projects, thus guaranteeing them load plans and allowing the country to make significant savings in foreign currency".

The largest group of hydrocarbons on the African continent ($33 billion in oil revenues in 2019 and $21 billion expected in 2020) ensures that it will continue to meet the growing needs of the domestic market (estimated at 70 million tonnes of oil equivalent - TOE - per year), while maintaining a level of exports above 90 million TOE, thanks to the production of new deposits in the South-West and South-East regions.

During 2020, Sonatrach has signed several agreements and memorandums with foreign partners, as well as renewed gas agreements with Italian and Spanish companies. Toufik Hakkar also cites "the signing of the contract for the construction of the new Hassi Messaoud refinery, which will strengthen our current capacities in order to meet the needs of the national market in fuels, and the signing of the FEED contract (Editor's note: contract for preliminary detailed design engineering) of the petrochemical project for the production of polypropylene".

Frédéric Dubessy

Tuesday, January 5th 2021

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