Algeria plans to bring its hydrocarbon production in 2023 at about 200 million tonnes of oil equivalent (TOE)a figure that it has not reached since 2010, Sonatrach CEO Toufik Hakkar told the Reuters news agency this Wednesday, January 18.
Sonatrach also plans to sign during the year of new agreements with the Italian energy giant, Eni, in particular on the supply of electricity, Hakkar clarified in the same interview. This will take place before the visit to Algiers next week by the President of the Council of Ministers of Italy since October 22, 2022, Giorgia Meloni.
Toufik Hakkar, CEO of Sonatrach, at the national conference on the Recovery Plan for a new economy, August 18, 2020.
The energy sector in Algeria experienced a desert crossing that lasted almost a decade, largely due to the fall in oil prices. However, oil prices rebounded in 2022 following the outbreak of the Russia-Ukraine conflict. On the other hand, the publication of the new investment law helped revive the hydrocarbons sector in Algeria.
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Sonatrach has not yet published the figures for total hydrocarbon production for the year 2022, but in 2021, it stood at 185 million tonnes of oil equivalent (TOE).
2023 will be, for Algeria, the year of gas
“My number one priority is to make sure that the company (Sonatrach editor’s note) registers a growth in reserves and production for next year and beyond,” CEO T. Hakkar noted in his interview with Reuters at the company’s headquarters in Algiers.
The CEO of Sonatrach and the CEO of ENI (Italy) sign a memorandum of understanding in Algiers.
In addition, Hakkar disclosed that Algeria exported 56 billion cubic meters (bcm) of gas in 2022, compared to 54 bcm in 2021. He added, without giving further details, that this quantity will increase further in 2023 thanks to newly commissioned fields. However, President Tebboune said that Algeria plans to increase its gas exports to 100 billion m3 this year.
the Algerian gas has become much more interesting for European countries since the continent’s largest supplier, Russia, decided to invade Ukraine in February 2022. An invasion that led to a multitude of sanctions against Russia and, consequently, the reduction of its exports to Europe .
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Moreover, after years of unsuccessful efforts to attract investment, the government passed a law encouraging foreign energy companies to take part in the exploration and production of oil and gas in Algeria.
Exporting electricity to Europe: Sonatrach’s other ambition
Italy has signed several important partnerships with Algeria over the past year to boost its energy supply. T. Hakkar said that others would follow in 2023: “We are going to sign other memorandums of understanding with Eni, in particular for the establishment of a cable to transport electricity to Italy“, said the boss of Sonatrach.
In 2023, Algeria aims to export its surplus electrical energy to Europe.
In this context, Algeria has already stated that it has an electrical capacity of 10 gigawatts and that it wishes sell excess energy to Europe . Moreover, Eni said last November (2022) that it was working with Sonatrach on joint solar energy projects.
Finally, it should be noted that the mandate of Toufik Hakkar, at the head of Sonatrach for three years, represents a rare period of stability for the Algerian oil company. The latter has, in fact, had 11 managing directors since 2000. Hakkar’s two immediate predecessors only lasted a few months each. While other former CEOs, such as Chakib Khelil and Ould Kaddour were sentenced to heavy prison termsin various corruption cases.
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