Algeria’s Revenue Is Likely To Fall

Algeria is on course to earn less revenue than in 2011, if oil prices continue on the downward slide they were
between March and June 2012. The country earned $37.7 billion fromcrude oil export from January-June 2012. Abdelhamid Zerguine, CEO of the Algerian state hydrocarbon company Sonatrach, stated that more than $30
billion have been paid to the Treasury as revenues from oil taxes in 2012 .
Sonatrach’s total output reached 748 million barrels of oil equivalent (748MMBOE) by June, which includes 419.27MMBOE exported.
2011 earnings were $71.5Billion, so it would seem, at first glance, that a $37.7Billion half year 2012 revenue suggests that the total year’s earnings will be higher. But some of the revenue in that $37.7Billion calculation came
from $120 per barrel oil price. The prices have fallen sinceMarch 2012.
Sonatrach said that itwill invest between $68.2 billion and $80 billion from 2012 to 2016 in order to increase hydrocarbon exploration, refining and petrochemical.
Algeria Earnings jumped last year by 27 percent to $71.5 billion from 2010’s $56.1 billion.