Sat. Jul 20th, 2024

‘BMI’ Research, a subsidiary of Fitch Solutions, has forecasted a slight decline in Algeria’s oil and gas production this year compared to the high levels recorded in 2023 and 2022, which had been driven by high energy prices and strong demand from Europe.

The estimates revealed that Algeria’s oil production is expected to reach 1.42 million barrels per day compared to 1.45 million barrels per day in 2023 and 1.48 million barrels per day in 2022.

In terms of gas, the country’s production is expected to reach 103.3 billion cubic meters, compared to 105.4 billion cubic meters in 2023 and 100.5 billion cubic meters in 2022.

‘BMI’ attributed the expected stagnation in production levels, particularly for gas, to the limited surplus capacity and insufficient investments.

‘BMI’ Research added that Algeria is expected to maintain its strong importance as an alternative gas supplier to Europe in the short term. However, any significant improvement in production and exports will first require proportional investments in new exploration activities. This sector continues to suffer from limited foreign investment flows despite recent regulatory reforms.

‘BMI’ stated that Algeria’s new regulatory and financial framework, along with its geographical proximity to Europe, especially in the context of Europe’s supply diversification, could enhance cooperation and investment from global oil companies in Algeria’s exploration and production sector up to 2028.

Earlier today, Algerian Energy Minister Mohamed Arkab announced the allocation of $3.5 billion between 2024 and 2028 to increase the country’s oil reserves and boost initial production through intensified exploration efforts and improved exploitation of hydrocarbon reservoirs.

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