OPEC Chief: Algeria Sticks to US Dollar For its Oil Exports

01-21-2008

The current head of the Organization of Petroleum Exporting countries (OPEC), the Algerian mines and energy minister, Chakib Khellil, called on the necessity to adapt oil prices on international markets to make them tally with local investments within these exporting countries, and provide additional sources for consumer countries.

On the sidelines of a forum organized by the "Excellency Management Club" held in Algiers, Mr. Khellil declared that this strategy has proved its efficiency and enabled several oil producing countries, including Algeria, to boost their economies over the last few years.

High oil prices on international markets, made it possible for the producing countries to take stock of finding new ways to launch their energetic investments again. The Algeria minister stated that the overall outlays of the Algerian giant oil company "Sonatrach" will reach some $46 billions in the medium term.

He further added that in doing so, Algeria will secure a sustainable growth stressing the fact that "Sonatrach" has become a world renowned energy consortium whose investments exist on four continents. Mr. Khellil said that in the future "Sonatrach" will invite for tenders only highly technologically and managerial skilled companies because "Sonatrach" is not  financially self-sufficient.

As to the question dealing with changing the exporting currency, Mr. Khellil said that the Algerian central bank is handling the situation perfectly and there is no need at all to change the currency to offset the losses engendered by a weak US dollar.