Algerian Minister of Energy, Mohamed Arkab, said that Algeria has the means and resources necessary to overcome the world oil crisis and that the recent fall in oil prices has not impacted Sonatrach’s activity, according to a press release.

Akrab stressed that Algeria is in a position to deal with the current low oil pricing and cited that “the average cost of production of Algerian crude is $14 per barrel and that most of the production is done in the fields of Hassi Messaoud where it comes down to just $5.” 

Despite this, in March Algerian President Abdelmadjid Tebboune announced a decrease in the company’s planned investment by 50% from $14 billion to $7 billion.

Regarding the outlook for the world oil market, Arkab said he was optimistic about a return to equilibrium through the gradual improvement in demand, starting next May or June.