Algeria state energy giant Sonatrach has cut its 5-year spending plan to just $56bn for 2018-22. This is down 25% on last year’s $75bn for 2017-21 and little more than half the $100bn planned for 2014-18.
But muddying the water is that actual spending in recent years has seriously lagged the planned figures. Each plan has presumed that ‘one more year’ of austerity will be followed by four years of higher oil prices and investment. If Sonatrach actually manages to spend the $11.2bn/y implied in the latest plan, this would mark a sharp increase on its actual $7.8bn spend for 2016 – the most recent available figure. This in turn is little more than half the $14.6bn annual spend implied by the 2016-20 five year plan released in January of that year. (CONTINUED - 1019 WORDS)
