$98.5 billion.. An increase in Algerian oil revenues after the Ukrainian war

Algeria boosted its bets on oil revenues by adopting last December the 2023 budget, at a value of $98.5 billion, to become the largest budget in the country's history since its independence 6 decades ago.

Algeria's revenues from the oil and gas sector jumped last year by more than 68% on an annual basis, driven by the rise in global energy prices and Europe's rush to provide alternatives to its Russian energy imports.

Strong returns

 Algeria reaped revenues from the hydrocarbons sector “oil and gas” during 2022 at the highest rate since 2014, amounting to about $59.8 billion, up from $35.5 billion in 2021.

 Oil revenues represent more than 90% of Algeria's foreign revenues, and 19% of the country's GDP. During the period from January to November 2022, Algeria achieved, for the first time since 2013, a surplus in the trade balance of $18.1 billion, thanks to the recovery of its oil exports, according to the APS.

Non-oil exports represented 11% of total exports for the first 11 months of 2022, with a value of only $6.06 billion, with oil exports accounting for the rest of the value.

Algeria's record oil discoveries

 In the field of oil discoveries, Algeria, Brazil and Namibia topped the countries of the world during 2022, and the Algerian oil giant Sonatrach ranked fourth in the world among the energy companies that made the most new discoveries.

Algeria is a global movement of oil discoveries with 11 discoveries, the most prominent of which is the   “Zimla arbaia” field with initial reserves of 140 million tons of oil, and gas reserves in the “Hassi R’mel” field, ranging between 100 and 340 billion cubic meters, according to Algerian Radio.

 Algeria recorded, during the period from 2020 to 2022, no less than 35 new hydrocarbon discoveries, of which 34 were from the “Sonatrach” company.

The Ukraine war represented an opportunity for Algeria

 The Ukraine war represented an opportunity for Algeria as the fourth largest oil producer in Africa, and the largest gas exporter on the continent, and given that the European Union is its first trading partner, it was natural that European eyes turn to it as one of the partners that can be relied upon to stop dependence on Russian energy supplies.

 Last July, Algeria ranked second for the first time in the list of gas exporting countries to Europe via pipelines, at a rate of 75 million cubic meters per day, in conjunction with the Russian decision to reduce the capacity of the Nord Stream 1 line, which extends from the Russian coast to northeastern Germany.