It is responsible for exploration and production, transport, refining, processing, marketing and distribution. Since the election of the new government in April 1999, there are plans to privatise and deregulate parts of Sonatrach although Sonatrach, Naftal and Naftec are, according to the government, not going to be privatised. With its increased national output, Algeria is looking to renegotiate its OPEC quota, which in March 2000 was significantly below Algeria's daily production capacity of 1 billion bpd. Upstream The upstream hydrocarbon industry is key to the Algerian economy. Despite successful oil and gas exploration since 1956, it can still be considered as a relatively under-explored area with great potential for new discoveries and, despite political unrest, Algeria has remained one of the key targets for foreign investors especially since 1991.
Algerian oilfields produce high quality light crude oils with very low sulphur and mineral contents.
The main areas of exploration for oil and gas are in the east, on the border of Tunisia and Libya and the central area where large gas discoveries have been made. Increased exploration and enhanced oil recovery projects are likely to increase both Algeria's reserves and production. Downstream The downstream oil industry in Algeria is also a key element in the national economy. Algeria is one of Africa's major oil refining centres with five oil refineries. It exports refined products mainly to markets in Western Europe.