Cash splash: Algerian Energy Minister Chakib Khelil
Algeria ‘plans $45.5bn energy splash’
Algeria plans to invest a total of $45.5 billion in its energy sector in 2008-2012, with $35.8 billion from state company Sonatrach and $9.7 billion from foreign partners, Energy and Mines Minister Chakib Khelil was quoted as saying.
The investment aims to increase the north African OPEC member’s oil production and gas exports, Khelil was quoted as saying by the Algeria Weekly Energy magazine.
"Sonatrach total investment, including its partners' share, over the medium-term plan of 2008-2012, amounts to $45.5 billion," he was quoted as saying by the magazine, Reuters reported.
"Of that figure some $35.8 billion represents Sonatrach's own investment, transport by pipelines, downstream activities and petrochemical projects, as well as external servicing activities set up through joint ventures.
"The remainder of $9.7 billion concerns investments by foreign partners."
Sonatrach, the state-owned oil and gas conglomerate, is Africa's largest company by revenue.
Algeria, a major energy exporter to Europe, produces about 1.4 million barrels of crude per day. Its gas exports are currently estimated at 62 billion cubic metres per year, and are expected to reach 85 billion cubic metres by 2012.
Algeria is currently staging its first exploration and production licensing round since 2005. The round has been eagerly awaited by multinational companies seeking to explore in the country, Africa's largest gas producer.