Algeria Looks To Build On Modest Output Gains But Investors Remain Wary

Algeria’s oil and gas production finally increased in 2016 after years in the doldrums. Algiers plans substantial investments to further boost output and diversify downstream options. But despite new gas production due to come on stream this year, keeping pace with domestic consumption remains a challenge

Algeria has enjoyed an upturn in both oil and gas production in recent months, according to data published by the government. Crude oil production increased to 1.14mn b/d in November 2016, up from 1.06mn b/d in the first half of 2016 and average 2015 output of 1.05mn b/d (MEES estimates peg the gains at more modest levels).

Overall oil and gas production was up 0.5% in the second quarter of 2016 and 3.6% in the third quarter, with a year on year increase of 0.8% for the first nine months of 2016, according to the government figures.

Total gas exports, comprising piped and liquefied natural gas, were up by 25% year on year for the first 10 months of 2016, according to the government. Combined oil and gas exports were up 11% to 109mn tons of oil equivalent (TOE) in 2016 from 98mn TOE in 2015. Sonatrach plans to increase oil and gas production to more than 205mn TOE in 2017, from 200mn TOE in 2016, despite agreeing to comply with Opec cuts in oil production, according to a statement by Sonatrach president Amine Mazouzi in late December. (CONTINUED - 2794 WORDS)

DATA INSIDE THIS ARTICLE

chart Algeria’s Oil Balance (‘000 B/D): Soaring Demand Now Accounts For 27% Of Output, Double 2005 Levels
chart Algeria’s Gas Balance (Bcm): Domestic Demand Now Accounts For Half Of Output
table Algeria: Key Gas Increments From The Algerian Energy Ministry’S Medium Term Development Plan 2015-2019
chart In Amenas Gas Output (Bcm)*
chart In Salah: Output Rebounds From 18 Mar Rocket Attack But Still Below 9bcm/Y Capacity