Sonatrach Group is depending on an increase in its hydrocarbon exports to 108 million tons oil equivalent in 2016 compared to the 98.1 million ton oil equivalent in 2015, representing a 10% increase.

According to the CEO of the Group, Amine Mazouzi (photo), results recorded in the past five months of this year are perfectly in coordination with the goals set by Sonatrach for 2016, in order to resume growth.

Algeria's oil and gas output is heading towards growth following years of unproductivity, driven by the increased production at its existing fields.

A Sonatrach report has shown that oil production is expected to reach 69 million tonnes of oil equivalent this year, compared to the 67 million tonnes last year, while gas production will increase to 132.2 billion cubic meters from 128.3 billion cubic meters in 2015 and the 130.9 billion cubic meters in 2014.

The company has said that all its investments until 2017, will be financed by equity capital adding that from 2018 the projects will be financed according to the development in oil prices.

From next year, if the price of a barrel remains at 60 dollars, there is a great possibility that the investments will be financed by the group’s own resources. But if the price of a barrel drops to $30 dollars, petro chemistry projects will be financed in Project financing (a funding formula based on the project’s profitability), while the most important refining projects will be financed from domestic banks from 2018, Algeria Press Service reports.

Anita Fatunji