Algerian Sonatrach Chief Sees Rise in Production & Sales for 2021

The year 2021 will see growth in the production and sales of the National Hydrocarbons Company Sonatrach, according to the company’s CEO, Toufik Hakkar. “In terms of operational activities, 2021 will see growth in production and sales,” Hakkar predicted in the editorial of the latest issue of the newsletter by the oil and gas group.

Hakkar assured that in the medium-term Sonatrach will continue to meet the growing needs of the national market, which will reach 70 million TEP from 2024, while maintaining an export level above 90 million TEP annually, due to the commissioning of new deposits in the South-West and South-East regions. Sonatrach’s investment program for the next five years will amount to US$40 billion dollars, of which 51% in the local dinar currency.

This program “reflects the implementation of our policy of promoting local content, with the tangible desire to be part of an integrative approach for national companies in the realization of our projects,” Hakkar stated.

Hakkar went on to laud Sonatrach’s resilience over 2020 in the face of both the Covid-19 crisis and the oil and gas industry crisis, limiting its impact on its operational activities and its financial capacities. He pointed out the realization of 18 new discoveries, the commissioning of major gas projects and infrastructures, the signing of the contract for the construction of the new Hassi Messaoud refinery and the signing of the contract.

He also mentioned the FEED for the petrochemical project for the production of polypropylene, which will allow the company to strengthen its current capacities and continue to honor commitments both on the national and international markets.”

Perhaps most importantly, Hakkar highlighted the revival of the interest of foreign partners in the Algerian mining sector, through the realization of several agreements and memoranda, and the renewal of gas agreements concluded with its Italian and Spanish partners, qualifying them as “positive signals opening up promising prospects.”