Algeria approves plan to boost oil and gas output

22 July 2014

National energy company Sonatrach plans to spend $100bn over five years

Algeria’s national energy group Sonatrach has signed off a $100bn spending plan for 2014-18, according to the state news agency, APS. The plan seeks to boost oil and gas output, as well as targeting the production of shale gas by 2020.

Onerous contract terms and concerns about security have seen the country’s hydrocarbons production stagnate since 2010.

Approval for the spending plan comes ahead of a new oil and gas licensing round in Algeria. Bids will be opened on 6 August and deals are set to be signed with the winning companies on 5 September.

The country’s last licensing round took place in 2010 and was deemed a failure by analysts, with only two blocks out of 10 being awarded.

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