Sonatrach will invest 40 billion dollars over five years

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In Algeria, Sonatrach, the oil giant will invest the equivalent of 40 billion dollars over the next five years to develop the production and refining of hydrocarbons. After a rather prosperous year 2021, the group, which had considerably reduced its investments following the Covid – 19 crisis, intends to move forward. Sonatrach is the lung of the Algerian economy. The company supplies 40% of the state coffers.

On his own, Toufik Hakkar has the power to restore color to the Algerian economy. By announcing on the AL24 television channel an ambitious investment program, the CEO of Sonatrach silenced rumors regarding a slow deterioration in the activity of the Algerian hydrocarbon giant.

Indeed, for twenty years production has declined, particularly in oil, for lack of sufficient investment. And the budget cuts ordered in 2020 by President Tebboune had worried the business community.

But the year 2021 and the spectacular recovery of the oil market has happened. Sonatrach saw its export revenues jump 74% to reach $ 34.5 billion. It has diversified its suppliers, in particular by sourcing more from the local market. It has also rationalized its expenses, and now plans to relaunch prospecting, exploitation and refining.

A refinery will be built in Hassi Messaoud and that of Skikda must be enlarged. Sonatrach, which has obtained tax advantages for investors, intends to attract more partners. A third of the 40 billion investment planned will concern foreign oil companies.

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