Chakib Khelil elaborates on several themes of the energy sector

The Algerian minister of energy, Mr Chakib Khelil, held a debate conference at El-Moudjahid forum, on themes relating mainly to results of the last OPEC conference, the situation of the international oil market and the Mediterranean policy of gas in Algeria.

In his commentary on the OPEC unexpected decision to reduce its production ceiling of 900.000 bpd to 24.5 mm bpd (against 25.4 mm bpd previously), during its September meeting, the minister attributed it to three main factors.
The fundamental motive is the fragility of the economic growth for the year 2004. According to explanations given by the minister, the leading power of the world economic growth is constituted now by the USA only. As to the growth of the other countries (EU, Japan...), it is either stopped or in recession.
For the two other factors explaining the OPEC decision, it is the return of Iraq within the oil organisation and the uncertainties which prevail on the oil market supplied by strikes in Venezuela and in Nigeria, the closing of the nuclear park of Japan and the rigorous weather conditions expected for next winter. On the basis of these data, "OPEC chose to take the initiative in order to not be brought to adopt later more difficult measures and avoid then a brutal fall in prices ", Mr Khelil said.

The OPEC policy consists in choosing a "proactive" approach and not a "reactive" one to factors susceptible of influencing the oil market, according to him. This OPEC decision is expressed by the steadiness of oil prices. Still more, he added, the mechanism of stabilisation, adopted by the OPEC in 2000, to situate the prices in a range of $ 22 and $ 28 has become credible enabling then to ensure the stability of prices.
Then the OPEC strategy is "to ensure a progressive coming back of Iraq, great producer and founder member of this oil organisation, on the market and to ensure an equilibrium between OPEC and non OPEC offers ", according to the minister.

Expressing himself on the gas policy of Algeria whichwas presented during the 18th Mediterranean conference on gas recently held in Algiers, Mr Khelil pointed out that it is to develop gas resources not only on the national level but also on the international level through the engagement of investments and the exploitation of gas abroad such is the project engaged by Algeria in Peru which should start by the year 2004.
The minister also dealt with the question of the clause of destination of gas contracts between Algeria and the countries of the European Union. Negotiations with the EU consist in reconsidering this clause while preserving Interests of the two sides. In this regard, Mr Khelil quoted the example of the accord to which recently reached by the Russian company Gazprom with the Italian partner ENI for the exploitation of the Russian natural gas.