Algeria's energy exports deteriorated in 2015, hindered by reduced oil and gas output as well as an increase in domestic consumption, an official data revealed.

According to a data from the Energy Ministry, the country’s overall energy sales attained 100 million toe, same as the previous year, whereas production dropped 1.3% to 153 million tonnes of oil equivalent (toe).

The country has been struggling to boost its oil and gas output which has deteriorated for ten years but many international oil firms are unwilling to invest due to Algeria's contract terms and the decline in oil prices globally.

Energy accounts for 60% of the state budget and 95% of Algeria's overall exports in spite of struggles to diversify the economy.

The production of crude oil and condensate dropped by 2.8% to 58.9 million toe, while natural gas output fell by 1% to 82.5 bcm. Liquefied natural gas output fell by 7.6% to 27 million cubic metres.

Algeria depends on the revenues generated from the energy sector to afford its imports and a wide range of subsidies, including food to housing but public finances have been affected by the low oil prices, making the government freeze some infrastructure projects and raise the price of some subsidized products.

The government’s effort to lower domestic energy consumption through the inauguration of campaigns was in vain as demand is still rising. The Demand for refined products, mostly gasoline and diesel oil, increased by 5.5% to 18.3 million tonnes, while the consumption of LNG rose by 5% to 39.5 bcm.

However, in 2015, the country made 22 oil and gas finds, compared to 32 in 2014, as it makes effort to attract foreign investment so as to improve its energy sector, Reuters reports.

Anita Fatunji