State-owned energy utility Sonatrach (Hydra) has announced investment plans in Algeria totaling USD 45.5 billion from 2008 to 2012. Sonatrach will invest USD 35.8 billion, and international partners will hold stakes worth USD 9.7 billion. The country, Africa’s largest gas producer, is holding an exploration- and production-licensing round, which is attracting the attention of companies from East and West. The investments will be made to boost oil production and gas exports and will go into pipelines, downstream and petrochemical projects. Joint ventures will be set up to provide external servicing activities. Algeria currently exports an estimated 62 billion cum of gas per year and is targeting 85 billion cum per year by 2012. Current oil production stands at 1.4 million barrels per day. Italy-based Saipem/Snamprogetti (Milan), in a joint venture with Japan-based Chiyoda (Tokyo), has been awarded the USD 4.4 billion engineering, procurement and construction contract for one 4.7 million-ton, single-train LNG plant (GL3Z) in Arzew, about 400km west of the capital of Algiers. The project, scheduled for completion by the end of 2012, is being handled as a turnkey contract.
