Algeria’s state-run company, Sonatrach Group, plans to invest billions of dollars in exploration and boost oil production by 14% in 2019.
Specifically, the company expects to spend $9 billion on exploring new oil and natural gas deposits. According to the company’s head of Associations Division Farid Djettou, they are planning to drill 100 wells per year from this year up to 2021.
While Algeria is an OPEC member and the biggest gas producer in Africa, its oil output has been declining since 2008 as foreign investments sagged. With revenues falling, the country is now taking another look at how its petroleum industry is run and trying to come up with solutions to increase its oil production.
Based on its future plans, Sonatrach will produce more than 230 million tons of oil equivalent by 2021, while foreign oil firms are also increasing their annual output by 10 million tons.
However, it is noted that Algeria plays an important role in creating OPEC’s historic deal to curb production of crude oil in 2016, and this increase could complicate efforts to reduce the global glut.