Sonatrach Could Borrow to Invest - Minister

Algerian energy minister Salah Khebri has suggested that one way for state oil and gas producer Sonatrach to increase oil and gas production, despite the collapse in world prices, could be to borrow.

He insisted on national radio that energy sector investments would be "pursued despite the fall in crude prices and the country’s investment income." Reported also by state news agency APS, Khebri said that -- even assuming that Sonatrach were short of investment capital -- it has two ways to raise financing. Because it has “no external debt” up to now, it “may resort to external borrowing just as the major oil companies do, or it could rely on partnerships.”

Khebri also indicated that a fifth oil and gas upstream international licensing round would soon be launched. He also said that a project to boost production with the help of extra compression capacity at the giant Hassi R’Mel gasfield is under study and should be implemented by 2019.

Sonatrach CEO Amine Mazouzi earlier on February 29 said he was confident that Algeria's oil and gas production would start increasing again in 2016.

Khebri hosted a visit by IAEA director general Yukia Amano to Algiers on February 29 and asked his guest for help in training engineers. “As well as more solar power, our ambition is to be a nuclear generator by 2030,” said Khebri.

Russian foreign minister Sergei Lavrov was also in Algiers the same day; he met Algerian President Abdelaziz Bouteflika, Prime Minister Abdelmalek Sellal and foreign minister Ramtane Lamamra for talks on bilateral and trade relations. Officials from both countries will next meet in July in Moscow for talks on trade, oil markets and the situation in Syria and Libya.