Algeria to intensify oil exploration

28 November, 2010

ALGIERS - Algeria will intensify exploration of oil and gas to increase its hydrocarbon reserves, the basis of its economy, and "guarantee the country's energy security in the very long term," said Sunday the Algerian Minister of Energy Youcef Yousfi.

"The Permanent Mission of our industry is to ensure the country's energy security in the very long term and ensure sufficient revenue for its development," said Mr. Yousfi in an interview with APS.

According to the minister, Algeria, which derives 98% of its revenue from oil, plans to increase "its national capacity of oil and oilfield services."

It also intends to emphasize partnership "based on a long-term by multiplying the tender, while being attentive, said the minister, to the evolution of conditions to meet and be able to attract potential investors."

Mr. Yousfi said that despite the current slump in oil and gas markets, state-owned Sonatrach maintained its long-term investments.

Sonatrach group plans to invest up to 2014 some 63 billion dollars to expand its capabilities of gas export.

Mr. Yousfi said that the current gas market in Europe, with an abundant supply of Russia and the arrival of other suppliers on this very buoyant market, where demand is constant, was not likely to endanger the Algerian gas exports.

Algeria is currently providing the European Union about 12% of its natural gas through two pipelines with Italy and Spain, and supplies more important liquefied natural gas (LNG).

A third pipeline, Medgaz, should be commissioned shortly and will deliver to Europe about 8 billion m3 of gas, according to Mr. Yousfi.

Algeria gas exports are expected to reach 100 billion cubic meters by 2015 against 62 billion today, according to official forecasts.

Source: Ennahar.
Link: http://www.ennaharonline.com/en/economy/5277.html.