Sonatrach’s CEO makes a critical assessment of his company’s organization, identified by “bureaucracy”


Sonatrach’s CEO, Abdelmoumen Ould Kaddour, made a critical assessment of the organization and functioning of his company. The bureaucracy, the inadequate organization chart, the company’s claims and many other aspects were discussed, Algerie-Focus website reported on Monday.

Speaking at a seminar devoted to the company, Mr. Ould Kaddour, reported several dysfunctions that undermine the company. For him, “the lack of a long-term strategy” is felt and the lack of an effective system of information and communication and a real handicap for Sonatrach.

The company’s first official acknowledged that the largest Algerian company “has not prepared for the scenario of a collapse of the oil market” and that now we have to find solutions urgently to get the company out of this issue.

As a solution, he advocated a reorganization of the group in a “smart” way to meet the needs of the country. In this regard, he indicated that Sonatrach would be changing the purpose of defining the objectives to be assigned to that company, by pointing out an excessive number of subsidiaries.

In his opinion, the group also suffers from the misdeeds of the bureaucracy, to the point where the latter has succeeded in spoiling the whole society. “It is a bureaucratic rather than an economic firm,” he said, adding that the group is struggling to keep its promises and commitments with its clients.

With respect to shale gas, it is affirmative that it will operate sooner or later. “There are several studies and a great deal of work awaiting us in this direction. Therefore, we must put as much time as possible and opt for appropriate strategic approaches for its exploitation, “he said.

For his part, Minister of Energy, Mustapha Guitouni, defended the idea that both of energy sector and Sonatrach Company are “essential to carry out the reforms of the President of the Republic” in good conditions”.

It is for this reason, he said, that nowadays we must question what Sonatrach will be in 10, 20, 30 and 50 years to come. On this point, he highlighted the continuation of the prospecting and the improvement of hydrocarbons’ production.

Regarding the receivables held by the company, the minister revealed that they will be “gradually settled in cash”, so as to allow him to finance his investments initially in equity.

Mr. Guitouni, then addressed the thorny issue of the amendment of the hydrocarbons law. He said in this regard that the changes that will be made “are aimed at encouraging the arrival of new investors and improving the country’s revenue”.

“Without prejudice to any question of sovereignty, a re-reading of this law is now necessary to improve our attractiveness in the field of exploration and exploitation of hydrocarbons, so as to renew our reserves, diversify the fabric of the petrochemical industries transformation and create good conditions for an optimal local valuation of our resources, “he clarified.


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