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March 1, 2021 | 4 years ago
Renewable energy development: Sonatrach to be one of key players
The CEO of Sonatrach said Tuesday in an interview broadcast by public television that "Sonatrach's investments will be focused on preserving the level of reserves and production, guaranteeing the country's energy security being one of our responsibilities. We will make sure to invest in the refining, petrochemical and processing industries, the objective being to no longer export natural resources as a raw product ".
Referring to the slogan chosen this year for the celebration of the 50th anniversary of the nationalization of hydrocarbons, "Together to guarantee energy security", Mr. Hekkar will say that energy security is the responsibility of everyone, including the consumer who will have to rationalize its energy consumption.
"We will be able to continue in this upward curve of consumption. Hydrocarbons can not be the only source of energy either, hence the importance of investing in renewable energies", underlined the same official.
Asked about the Group's investment horizons, Mr. Hekkar said he was confident about the improvement in the global energy situation, especially with the start of anti-covid-19 vaccination campaigns. .
This situation augurs, according to the CEO of Sonatrach, of an improvement in oil prices, currently within the limits of 65 dollars, noting that this improvement will allow the Group to launch the various investments programmed in its five-year investment plan.
Addressing the delay in the promulgation of the implementing texts of the new law on hydrocarbons, Mr. Hekkar will put forward as an explanation the reduction in the number of administrative staff in 2020, which has resulted, he said, a slow pace of work of the groups responsible for drafting the texts. These groups have resumed work and are on the verge of finalizing the texts.
And to continue, in the same context, "even if the application texts were ready, the world situation is marked by a decline in investments, especially in upstream oil. International companies need time to recover from repercussions of the pandemic ".
He nevertheless forecast a "timid recovery" in 2022, of investments, particularly in exploration. A strong recovery in this area should take place, according to him, with the improvement of oil prices which must remain at levels ranging from 60 to 80 dollars per barrel.
On the international presence of the company, Mr. Hekkar said that Sonatrach had carried out explorations in Libya and Niger, and made investments in gas fields in Peru.
Despite the difficult conditions induced by the Covid-19 pandemic, Sonatrach has preserved its production capacities which has made it possible to meet national needs, he stressed.
Addressing the financial losses suffered by the Group due to the pandemic, Mr. Hekkar affirmed that it is not a question of losses, but rather of a decline in the turnover of the company, a decline due to two factors, namely a fall in oil prices and commitments to reduce production in application of OPEC + decisions.
In figures, the CEO of Sonatrach reported a decline in revenues, from 33 billion USD in 2019 to 20.2 billion USD in 2020 for marketing, in addition to 13 billion USD deficit for exports.
However, thanks to the combined efforts of the executives and workers of the company, Sonatrach succeeded in closing the 2020 financial year with a positive result, in particular after the application of the guidelines of the President of the Republic relating to the reduction of costs of investment and production.
For refining, Mr. Hekkar explained that the company he chairs had embarked on operations to rehabilitate the five oil refineries, the objective being to meet national demand and limit the import of fuels, specifying, in this regard, that more than 370,000 tons of petroleum products were exported for the first time in 2020.
He also highlighted the importance of the Boosting 3 project in Hassi R'mel, one of the most important projects carried out by the Group over the last decade.
February 25, 2021 | 
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