ALGERIA’S SONATRACH SEES 10 PCT RISE IN HYDROCARBON EXPORTS IN 2016
ALGIERS, -- Algeria's State-owned hydrocarbon company Sonatrach Group is projecting an increase of 10 per cent in hydrocarbon exports to 108 million tons oil equivalent (TOE) in 2016 from 98.1 million TOE last year.
Group chief executive officer Amine Mazouzi announced when presenting the group's financial results here Sunday that the results achieved in the first five months of 2016 "are perfectly in line with the ambitious goals set by Sonatrach for 2016 to enable the Group to resume its growth".
he added that last year, Sonatrach's raw hydrocarbon production stood at 191 million TOE, all products taken into consideration, a drop of 4.2 million TOE from 2014, and representing 99.3 per cent of the goal set under its 2015 plan.
Mazouzi told a media conference that the slight drop in production last year was because of "the combined effects of the cancellation of some projects with the natural decline in a number of mature fields".
Crude oil production during the first four months of 2016 reached about 100 per cent of forecasts, he said.
Mazouzi also disclosed that all investments by Sonatrach until 2017 will be financed by equity capital, while from 2018 projects will be financed according to the development in oil prices.
"All the investments for the period 2015-2017 will be financed by the group's equity capital. If there weren't refinery projects in 2018, we could have financed our investments by equity capital," he added.
From 2018, if the price of a barrel remains at 60 US dollars a barrel starting from 2017, there is a "high probability" that the investments will be financed by the group's own resources, said Mekmouche.
If the price falls to 30 USD a barrel, petrochemical projects will be financed in project financing, while the most important refining projects (around 2.0 billion USD) will receive, from 2018, domestic bank financing under a funding formula based on the project's profitability, said Mazousi.
Source: Name News Network