Algeria Oil And Gas Output On The Rise

Reuters

ALGIERS, June 26 (Reuters) - Algeria's oil and gas output is moving back to growth after years of stagnation, helped in part by increased production at the North African OPEC member's existing fields, state energy company Sonatrach said on Sunday.

The North African country has struggled to draw in foreign energy companies to help it to explore new fields, its efforts undermined low global oil prices and last year's near-50 percent drop in energy revenue that accounts for more than 60 percent of the Algeria's budget.

Oil output will reach 69 million tonnes of oil equivalent in 2016, against 67 million tonnes last year, while gas production will rise to 132.2 billion cubic meters (bcm) from 128.3 bcm in 2015 and 130.9 bcm in 2014, a Sonatrach report showed.

"The era of stagnation is behind us and we are now in a phase of growth," Sonatrach chief Amine Mazouzi told reporters on Sunday.

A drop in European gas demand has dented Algerian exports that have also been squeezed by a combination of slowing production at mature fields, low investment and Algeria's own rapidly increasing need for gas to generate power.

Sonatrach, however, has invested to stabilise and increase production at its large, mature fields and expects to bring five new gas fields online in the south of the country over the next few years.

Gas output is expected to reach 141.3 bcm in 2017, 143.9 bcm in 2018, 150 bcm in 2019 and 165 bcm in 2020, according to a Sonatrach document.

Oil output will reach 75 million tonnes of oil equivalent in 2017, 75 million tonnes in 2018, 77 million tonnes in 2019 and 82 million tonnes in 2020, the document showed.

Energy companies and Algerian and European Union officials held a summit last month to explore ways Algeria can adapt to more competitive markets and attract the investment needed to pump more gas.

Italy's Eni almost doubled its imports of gas from Algeria to 11.5 bcm in 2015, compared with only 6 bcm in 2014, Sonatrach said.

About 30 international companies are present in Algeria's oil and gas market, including Eni, Anadarko, BP, Cepsa, Shell, Statoil and Sinopec .

Two previous bidding rounds for oil and gas fields failed to attract a lot of interest. But Sonatrach has said it will start direct bilateral talks with companies in an effort to jumpstart investment.

(Editing by Patrick Markey and David Goodman)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
 Company: BP plcmore info


 - BP: Potential Gas Play Could Open Up New Phase of North Sea Development (Dec 6)
 - Mexico Oil Auction Succeeds in Drawing World's Biggest Drillers (Dec 6)
 - Russia's Rosneft Offers $9.4B In Local Bonds And Eyes Egyptian Investment (Dec 5)
 Company: Statoilmore info


 - Statoil to Stop Using H225 Helicopter Variant Involved in Crash (Dec 6)
 - Statoil CEO Sees Oil Market Rebalancing Sooner, Price Heading Towards $60 (Dec 6)
 - Mexico Oil Auction Succeeds in Drawing World's Biggest Drillers (Dec 6)
 Company: Anadarko Petroleummore info
 - Mozambique Approves Changes To LNG Contracts With Anadarko, Eni (Dec 7)
 - More Company Climate Votes Ahead, As Trump May Loosen Energy Rules (Nov 25)
 - US Shale Firms Go Back To Work Buoyed By OPEC Deal, Trump Victory (Nov 14)
 Company: ENImore info


 - Mozambique Approves Changes To LNG Contracts With Anadarko, Eni (Dec 7)
 - Eni: Oil Worker Dies Following Congo Platform Fire (Dec 2)
 - Eni Aims to Cut Stake in Zohr Field to 50 pct, Could Happen Quickly (Nov 28)
 Company: Sonatrachmore info
 - Algeria Oil And Gas Output On The Rise (Jun 26)
 - At-13 Well in Algeria Hits 240-Foot Gas-Bearing Formation (May 23)
 - Document: Algeria's Sonatrach Awards $180M in Oil Service Contracts (May 8)
 Company: Sinopecmore info
 - As Oil Giants Dally Over Glut, Asia Gets To Work On Output Cuts (Sep 7)
 - Sinopec Expects Profit from Argentina Unit if Oil Recovers (Sep 2)
 - Profit At China's Sinopec Slumps 21.6% In First Half (Aug 29)
 Company: CEPSAmore info
 - Algeria Oil And Gas Output On The Rise (Jun 26)
 - CEPSA Commences Drilling at Tarach-1 in Kenya Block 11A (Apr 15)
 - Cepsa Resumes Iranian Oil Supplies to Spain (Feb 3)
 Company: Royal Dutch Shell plcmore info
 - Shell To Develop Major Oil Field In Iran (Dec 7)
 - Survey: Collaboration is Crucial for Future Success in North Sea (Dec 5)
 - Australia Watchdog Says North West Shelf Gas Venture Underpaying Royalties (Nov 28)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
US Conroe: Accountant - Sr. Accountant
Expertise: Accounting|Financial Analyst
Location: Conroe, TX
 
Senior Accounting Analyst Job
Expertise: Accounting|Budget / Cost Control|Financial Analyst
Location: Minneapolis, MN
 
Compliance Analyst Job
Expertise: Accounting|Energy / Commodity Trading|Financial Analyst
Location: Denver, CO
 
search for more jobs

Natural Gas : $3.64/MMBtu 0.27%
Brent Crude Oil : $53.93/BBL 1.83%
Light Crude Oil : $50.93/BBL 1.66%
Updated in last 24 hours