The strategy of Sonatrach’s new CEO- Source   

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A general view of the headquarters building of Algerian state energy company Sonatrach in Algiers, Algeria, February 8, 2015. After a deep slide in oil prices, Algeria's state energy company Sonatrach is shifting strategy to offer foreign companies direct negotiations over 20 oil and gas fields in a bid to draw in wary investors and increase output. Picture taken February 8, 2015. REUTERS/Ramzi Boudina EDITORIAL USE ONLY. NO RESALES. NO ARCHIVE

 

Newly appointed head of the public oil company, Abdelmoumen Ould Kaddour is putting on a completely new “well thought out” strategy to straighten Sonatrach, a source close to the new CEO told Alg24.

Ould Kaddour’s strategy is not oriented towards oil exploration neither the search for new drillings. But it is primarily based on reducing the cost of producing hydrocarbons, to allow the company earn more, the source same source said.

The cost of producing a single oil barrel exceeds $ 15, much higher than in Saudi Arabia or Iraq. Reducing the output cost through a thoughtful strategy and adequate logistics could save Sonatrach a few dollars more.

Abdelmoumen Ould Kaddour is not limited to reducing the cost of production, but also intends to put an end to company’s international arbitration business, the source explained.

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