Algeria’s hydrocarbons revenue is expected to fall by $10 billion this year, the country’s energy minister Abdelmadjid Attar said on Tuesday.
“We are in a difficult economic situation,” the official said on state radio, adding that revenue from oil and gas sales are estimated to fall to $23 billion this year. In 2014, revenues totaled $60 billion.
Hydrocarbons are the primary revenue generator for the North African country, which supplies large amounts of natural gas to Europe. Energy exports are the backbone of the economy, accounting for roughly 60% of budget revenues, according to the Gas Exporting Countries Forum (GECF) – which Algeria is a member of.
With proven gas reserves of 4.5 trillion cubic meters and 12,200 billion barrels of oil, Algeria is yet to attract investment to fifty small O&G discoveries, Kallanish Energy notes.
State energy company Sonatrach is hoping to close development deals with international explorers after a new energy law was passed last November. However, the government has not published the texts to implement the legislation, and the minister said foreign investors are awaiting these to decide on whether to invest or not.
Attar expects the texts to be published before September.
This post appeared first on Kallanish Energy News.