Algerian state-owned energy company Sonatrach has revealed that the company has launched a giant investment plan, aimed at increasing the country’s oil reserves above 40 billion barrels, that dwarfs the amounts spent previously.Â
Mohammed Mezian, the CEO of Sonatrach told Algerian news paper Al-Khabar that the country will invest US$1.5 billion in the hydrocarbons industry in 2009 compared to between $300-$400 million in previous years.Â
Mezian also announced that he thinks between $70-$80 dollars a barrel is a fair price for oil and that such a price would allow oil producers to invest adequately in future projects.
Algeria’s oil revenue during the first four months of 2009 reached US$13.1 billion. The current production capacity in the country is 1.45 million (barrels per day) bpd, but it produces only 1.2 million bpd due to current OPEC quotas.
Mezian said that the Algerian proven reserve is about 40 billion barrels and is expected to increase as the company has launched a giant investment plan where it invest about $1.5 billion in 2009 comparing to $300 million to $400 million in previous years.
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