Algeria’s Minister of Energy and Mines, Mohamed Arkab, has addressed the Council of the Nation (Senate) and reported that hydrocarbon exports have increased sharply during the first nine months of 2022 to reach US$42.6 billion. ‘The volume of hydrocarbon exports stood at 69.1 million tonnes of oil equivalent (TOE) at the end of September 2022 said Arkab, which ‘had generated revenues of US$42.6 billion against US$24.1 billion during the same period of 2021, an increase of 77%, thanks to the increase in oil or gas prices.’ He also stated that oil taxation had risen by 10% during the same period to reach AD3,865 billion (US$27.52 billion) compared to AD1,857 billion (US$13.22 billion) during the first nine months of 2021.

After an unprecedented 40% fall in 2020 to US$23.8 billion — caused by falling oil prices as a result of the COVID-19 pandemic — hydrocarbon exports increased in 2021 to reach US$38.6 billion when the oil prices rebounded. This year it is expected that US$56.6 billion of hydrocarbons will be exported as a result of higher oil prices following Russia’s 24 February invasion of Ukraine.

This is the first time since 2014 that oil and gas exports will exceed the US$50 billion mark. After the 2014 oil crisis, Sonatrach’s exports fell to US$34.5 billion in 2015 and US$30 billion in 2016, before rising to US$35 billion in 2017 and US$41 billion in 2018, and then slipped to US$35 billion in 2019. By comparison they reached US$60 billion in 2014 and more than US$73 billion in 2011.

This year’s windfall has led to some very surprising figures in next year’s budget according to the Loi de Finance for 2023. The Ministry of Finance’s budget will be the equivalent to US$11.9 billion but it still does not know how to use or spend this sum. It is an extravagance that will not fail to shock or anger Algerians because it comes at a time when the latter are overwhelmed by galloping inflation, the excessive cost of living, growing social insecurity and massive unemployment. 

The ministry’s overall 2023 budget of AD2,781 billion (US$19.7 billion) is historically high and means that it is only exceeded by the extravagant defence ministry’s vast budget. To understand its unprecedented size it is worth recalling that the finance ministry’s operating budget in 2022 was only AD92.9 billion (US$660 million) so it has increased by US$17.9 billion between 2022 and 2023. 

There is a vast unassigned amount of AD1,676 billion (US$ 11.9 billion) the purpose of which has not yet been specified or determined. According to the Loi de Finance it seems that no one has yet decided how this huge sum will be spent.