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Algeria’s state-owned oil company Sonatrach is reportedly planning to invest $40bn over a five-year period up to 2026.

According to an Agence France Presse report, the company will invest the money in gas exploration and extraction, and oil exploration, production and refinement.

Sonatrach CEO Toufik Hakkar was quoted by the news agency as saying on state television: “Our investment plan between 2022 and 2026 is approximately $40bn, including $8bn in 2022.”

Hakkar said that a third of the planned investments would involve foreign companies.

“The largest part will be dedicated to exploration and production, to maintain our production capacities, as well as refining projects to meet the national demand for fuel,” Hakkar added.

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By GlobalData

In Algeria, the firm intends to build a refinery at the country’s largest oil field, as well as expand the Skikda refinery, enabling it to convert certain derivatives into fuel.

The company is also planning to commission the fourth turbocharger for the Medgaz pipeline, which transports Algerian gas to Spain.

Hakkar said that the turbocharger will enable the company to supply the contracted quantities of gas, which is estimated to be 10.5 billion cubic metres, and meet any additional demands.

Last year, Algeria closed the 13.5 billion cubic metre-long Maghreb-Europe pipeline, which supplied gas to Spain and Portugal via Morocco.

As an alternative, the company was considering expanding Medgaz pipeline into the Mediterranean.

Sonatrach is also looking to resume operations at its oil projects in Libya, reported the state news agency APS.

Hakkar was cited by state TV channel AL24 News as saying that the firm is currently working with its Libyan partners to create safe conditions for its equipment and workers.

The firm suspended its activities in the war-torn country in 2014.

Last month, Eni signed a new oil exploration and production contract with Sonatrach for the onshore Berkine basin area in Algeria.

The two firms agreed to create an exploration and development work programme in the area.