Algeria’s Sonatrach to invest in increasing crude output

According to Bloomberg, Algeria’s state-run energy producer Sonatrach is planning to invest more than $50 billion in order to increase oil production by 14% in four years. The producer’s plans include searching for new deposit of oil and natural gas and drilling 100 wells annually through 2022.

The country’s oil output decreased since August 2008 and it produced 1.04 million barrels/day in February, which was the lowest level since 2002, the reports revealed. With the new investments, Sonatrach’s annual oil production will be more than 230 million tons by 2021.

Algeria had agreed to cut oil output as part of OPEC oil cut deal. The targeted increase in production is likely to affect the decision, which was made to re-balance the global crude oil market.