Algeria's state oil company to maintain investment plan despite plummeting prices

IndustriesAssociated Press

Algerian state oil company Sonatrach says it won't cut back spending on its next five-year plan despite the precipitous decline of oil prices.

Said Sahnoun, Sonatrach CEO, said Sunday that the next five year plan budgets $90 billion to improve production even as oil prices hit five year lows of around $65 a barrel.

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The plan includes developing oil and gas fields, improving transportation of products and investment in petrochemical and refining capacity.

Sonatrach's exports provide Algeria with 98 percent of its hard currency and the aging fields have seen declining production.

The company's production has dropped form 232 million tons equivalent of petrol in 2008 to 194.5 in 2012.

Strict investment laws have also kept away foreign money and know-how to make new discoveries.