Algeria’s energy export volumes dropped by 2.8% in the first nine months of 2015 due to increased domestic consumption and decreasing output, according to the Energy Ministry, Reuters reported.
Overall energy exports dropped to 74.7m tons of oil equivalent in the first nine months of 2015, against 76.9m tons during the same period of 2014, the Ministry stated. The decline follows previous overall export and output drop in 2014. However, a government’s report informed that crude oil exports had increased, without giving a figure. Natural gas exports fell by 7.5%, while refined energy products fell by 5.3%.
Oil exports make up 95% of Algeria’s total exports and 60% of the state budget. As a result of declining global oil prices, energy revenues fell by 45% in the first nine months of 2015 to $25.8b. The government has also said earnings would fall by 50% to $34b in 2015, before reaching $26.4b this year, pushing down reserves to $121b.
Algeria has stated its desire for greater foreign investment in its energy fields, but has seen disappointing results in attracting investors. The country recently delayed a bid round for foreign oil companies that had been planned for Q3 of 2015. In 2014, it awarded only 4 contracts for its 31 fields available to foreign investors. In 2011, the country received bids for only 2 out of 10 fields it had on offer.