Sonatrach’s CEO, Abdelmoumen Ould Kaddour, said Thursday in Paris, that Algeria would maintain its level of oil and gas exports, while ensuring security of supply to domestic market, APS reported on Thursday.
“We will continue to ensure security of supply for our domestic market and will try to maintain and eventually increase the level of oil and gas exports,” he said in his address to the 18th summit, after having developed the challenges and opportunities of hydrocarbon industry in Algeria.
He told participants at the summit, comprising ministers, Business leaders who are active in the oil and gas sector, and international experts that Algeria’s ambition is to become an “attractive place” for the international oil industry.
“I have a clear vision of the future of my country’s energy sector and the role my company can play in the future,” said Ould Kaddour.
He pointed out in this context that Sonatrach was aiming to diversify its activities and also to invest more and more in renewable energy sources, in particular in the solar energy of which Algeria benefits in abundance.
Algeria, the largest country in Africa, the Mediterranean and the Arab world by its surface area, has one of the highest solar deposits in the world estimated at more than 5 billion Gwh per year.
The annual average of sunshine for the whole territory is estimated at more than 2,500 hours and would exceed 3,600 hours in some parts of the territory, he said, adding “We are determined to develop our resources, taking due account of social and environmental concerns,” he said.
In addition, he indicated that, in terms of exploration and production, Sonatrach will maintain its development plan upstream, particularly in projects that will provide growth for about $ 70 billion for the period 2017-2021, providing for an investment of $ 8 billion per year in exploration and production activities.
He argued that in Sonatrach’s exploration and production strategy, cost reduction is a priority to make future investments more profitable.
In terms of exploration, Ould Kaddour said that the national company he led, has achieved good results, but the findings remained modest: “On average, we have 30 medium-sized discoveries per year since 2010,” he said, adding “reserves are substantial”.
Capital expenditure (CAPEX) of exploration partners have been declining since 2010. In total, $ 2.4 billion was invested in partnership for 2010-2016, an average of $ 300 million per year, he explained, pointing out that most investments (CAPEX) are supported by Sonatrach Company.