Sonatrach has announced the investment of US$100bn to increase oil and gas output from 2014-18 in Algeria, besides starting production of shale gas in 2020
The US$100bn spending for the five-year period will be aimed at boosting reserves and increasing oil and gas production, news agency APS said, citing an unidentified source at Sonatrach recently.
The plan has allocated US$42bn to help develop oil and gas fields, which includes US$22bn for natural gas development.
The company said that it is also planning to start production at six gas fields with a total capacity of 74mn cu m per day in the next three years. Algeria is currently preparing to open bids for a new oil and gas round, with 31 fields on offer, in September this year.
OPEC member Algeria has been reportedly struggling to raise energy output, on which it relies heavily for state funds to finance development and social programmes.
For the first time, the bidding will include blocks for unconventional resources, with tax incentives for foreign companies interested in investing in shale gas and shale oil, Sonatrach said.
The North African country’s energy officials are optimistic that Algeria’s shale gas potential is significant and that Sonatrach will start producing it in 2020, with initial output of around 30bn cu m per year.
