Sonatrach issued the following announcement on Dec. 31.
The national hydrocarbons company, SONATRACH, intends to implement an investment plan of 40 billion dollars over five (05) years, of which 51% in Dinars, in particular through the start of production and the ramp-up of several deposits, SONATRACH CEO Toufik Hakkar said Thursday in a New Year message.
In a message sent on the occasion of the New Year 2021, Mr. Hakkar announced that SONATRACH’s investment program will amount to 40 billion dollars, 51% of which in Dinars over the next five years “reflecting the implementation of our policy of promoting local content, which has been a highly strategic axis during this year ”.
He thus underlined “the tangible will of SONATRACH, to be part of an integrative approach of the national companies as for the realization of its projects, thus guaranteeing them load plans and allowing the country, significant savings in foreign currency”.
In addition, the same manager indicated that in terms of operational activities, “production and sales will experience growth in 2021, thanks in particular to the commissioning of the peripheral fields of Gassi Touil and Hassi Bir Rekaiz as well as the ramp-up of production at Tinrhert and the completion of Boosting Hassi R’Mel for the North zone ”.
In the medium term, the CEO of SONATRACH stresses that the company will continue to meet the growing needs of the national market, which will reach 70 million tonnes of oil equivalent (TOE) from 2024, while maintaining a level of exports above of 90 million TOE annually, thanks to the commissioning of new deposits in the South-West and South-East regions.
On the financial level and despite the negative consequences of the health crisis caused by Covid-19, Sonatrach expects to end the 2020 financial year with a profitable result “which we consider to be the fruit of the efforts made by all of our collectives and by the company through, in particular, the reduction of operating and investment expenses ”.
resilience limiting the impact of the unprecedented double crisis
In addition, Mr. Hakkar observed the resilience of the public company in the face of the completely unprecedented double crisis, health and that of the oil and gas markets, allowing Sonatrach to face its consequences by limiting its impact on its operational activities and financial capacities, while staying on course to achieve its production and marketing objectives.
“This has resulted in particular in the making of 18 new discoveries, with a much higher success rate than in 2019, as well as the commissioning of major gas projects and infrastructures, allowing Sonatrach to continue to honor its commitments both on the national market and with its foreign customers such as the Tinrhert gas field, Boosting Hassi R’mel for the South and Central Zones, Boosting Hamra, the GR7 gas pipeline and the extension of the GPDF gas pipeline ” he recalled.
The year 2020 also saw the revival of the interest of foreign partners in the Algerian mining sector, through the implementation of several agreements and memoranda, as well as the renewal of gas agreements concluded with Italian and Spanish partners, “Which are all positive signals opening up promising prospects,” he said.
“We should also mention the signing of the contract for the construction of the new Hassi Messaoud refinery, which will strengthen our current capacities in order to meet the needs of the national fuel market, and the signing of the FEED contract for the petrochemical project for the polypropylene production ”, quotes Mr. Hakkar.
In addition, the CEO of SONATRACH underlined “the usual surge of solidarity provided by the SONATRACH Group to the national community”, through the provision of medical equipment and means of protection for the fight against Covid-19, to many health structures in the country and the donation of a day’s salary for its collectives, as well as other societal actions for the benefit of populations in isolated and remote areas. (APS)
Original source: https://sonatrach.com/actualites/sonatrach-un-programme-dinvestissement-de-40-mds-dollars-sur-cinq-ans
