Algeria's Sonatrach To Refine Crude Abroad To Cut Fuel Import Bill -CEO
TIGUENTOURINE, Algeria, Jan 16 (Reuters) - Algeria's Sonatrach plans to send oil abroad for refining as it seeks to lower a fuel bill that reached a record $2.5 billion last year, the head of the state energy firm said on Tuesday.
Abdelmoumen Ould Kaddour said Sonatrach would pay the processing costs before bringing refined fuel back to Algeria, and was also negotiating to buy shares in a foreign refinery.
"Our goal is to reduce our imports of gasoline, they are too high," Ould Kaddour told reporters.
Algeria, which needs to meet surging domestic demand, paid $800 million for fuel imports in 2016, but last year the bill more than tripled to $2.5 billion because of refining problems, a Sonatrach source said.
Ould Kaddour was speaking during a visit to the southern gas complex of Tiguentourine, where he said production was stable at 8.8 billion cubic metres per year, just below maximum capacity of around 9 billion cubic metres.
Algeria, a key supplier of gas to Europe, exported 55 billion cubic metres (bcm) of gas in 2017, Ould Kaddour said. That was just up from the 54 bcm that the North African nation exported in 2016, according to Sonatrach officials.
Ould Kaddour's visit marked the fifth anniversary of an attack by al Qaeda-linked militants at Tiguentourine that killed 40 mostly foreign contractors. The plant is operated by Sonatrach, BP and Statoil.
Ould Kaddour also said Sonatrach was improving relations with its foreign partners and had resolved "more than 10" out of 15 litigation cases.
(Writing by Aidan Lewis; Editing by Louise Heavens and David Evans)
WHAT DO YOU THINK?
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.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension