Algeria to boost oil production to increase revenue

Algeria’s Minister of Energy, Youcef Yousfi, said on Thursday that the country could boost oil production, despite its own call to OPEC to cut production, in order to increase its revenue stream. The worldwide cut in oil prices has hit Algeria’s income severely.

Speaking to Algeria’s parliamentary energy commission, Yousfi said that the government is in the process of increasing the development of dozens of its oil fields. “We will study the possibility of raising our hydrocarbon production to restore the country’s revenues,” he added. Ninety-five per cent of Algeria’s economy relies on its revenue from oil and gas exports.

Algeria produces about 1.2 million barrels of oil a day, according to its OPEC quota, and the country called for a production cut in order to face the consequences of falling oil prices in the international market over the past six months. However, Saudi Arabia opposed this. Saudi Minister of Petroleum Ali Al-Naimi said that OPEC will not cut its production, “even if the prices fall to $20 a barrel.”

Yousfi insisted that pumping more oil is necessary in order for Algeria to carry out its development projects in the face of lost revenues as a result of lower oil prices. “We do not know how long the crisis will last and the country needs to fund its economic development projects without resorting to international borrowing.”