Algeria aims to increase energy investments to 10 billion dollars

Algerian Prime Minister Ayman Ben Abdelrahman said on Monday that Algeria plans to increase investments by $ 2.6 billion in the oil and gas sector next year to increase production by 8.9 million tons of oil equivalent.

Bin Abdul Rahman informed Parliament, presenting his government’s action plan, that The total investment in oil and gas in 2022 will reach 10 billion dollars From $ 7.4 billion questyear, with the aim of increasing production to 195.9 million tons of oil equivalent from 187 million tons.

The OPEC member country relies heavily on the energy sector, but last year cut its investment spending plan in oil and gas to 7 billion dollars to overcome the financial pressures caused by the decline in global oil prices due to the Covid-19 pandemic.

The government expects revenue from energy exports to rise to $ 33 billion questyear from 20 billion in 2020 after the increase in oil prices on the international market.

The action plan includes reforms to improve the investment climate, in particularly in the non-oil sector, to help reduce Algeria’s dependence on oil and gas, which account for over 90% of total export revenue and 60% of the state budget.

The plan also includes a commitment to keep the government subsidy policy unchanged to avoid social unrest. The government currently subsidizes almost everything from basic food to housing, medicine and fuel.

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