The Algerian Government is reportedly planning to increase oil and gas investment by $2.6bn in 2022 to boost output.

Algerian Prime Minister Ayman Benabderrahmane was quoted by Reuters as saying that the proposal would bring the total investment in the country’s oil and gas sector to $10bn in the next year.

The country’s oil and gas investment this year stands at $7.4bn.

The news agency quoted Benaberrahmane as saying to parliament that the proposed investment boost would help in increasing the country’s production to 195.9 million tonnes of oil equivalent from 187 million tonnes of oil equivalent.

Last year, the OPEC member had reduced its planned oil and gas investment budget to $7bn in the wake of a drop in global crude prices following the outbreak of the Covid-19 pandemic.

This year, the country anticipates earnings of $33bn from energy export, up from $20bn in 2020 as global oil prices rebound.

The oil and gas sector accounts for more than 90% of the country’ total export earnings. It also accounts for 60% of the state budget.

In order to reduce the country’s reliance on oil and gas, the government plans to improve investments mainly in the non-energy sector.

Earlier this year, Reuters reported that Italy’s Eni was in talks with oil major BP to acquire its oil and gas assets in Algeria.

With the acquisition of BP’s assets, Eni expects to transform Algeria into a hub.

The sale would allow BP to refocus its businesses by reducing debt while addressing declining margins and climate pressures.