Algeria’s Energy Minister, Mohamed Arkab, has announced that Algeria’s proven oil reserves currently stand at 10 billion barrels, according to Reuters.

Further to this, Mr. Arkab also announced that Algeria had an estimated 2.36 billion cubic meters of proven natural gas reserves. Algeria is a major supplier of gas to Europe.

Algeria relies heavily on oil exports as the state’s main source of financing, however in recent years Algeria’s oil and gas output and exports have been falling in recent years because of growing domestic consumption and a lack of foreign investment. This has had an adverse effect on Algeria’s state budget.

In a bid to stimulate investment, the government late last year approved an energy law offering attractive contract terms including tax incentives to foreign investors.

Very recently, state energy firm Sonatrach signed a Memorandum of Understanding (MOU) this year with oil major Exxon Mobil Corp.