Algeria's Sonatrach appoints new chief executive

 

Algeria's state energy firm Sonatrach has named Amine Mazouzi as its new chief executive to replace interim head Said Sahnoun, who had been appointed less than a year ago, two industry sources said on Sunday.

Mazouzi, a younger-generation manager in Sonatrach's production development department, will take the helm as the North African country seeks to draw more foreign oil investment and offset a fall in world crude prices.

A Sonatrach spokesman was not immediately available for confirmation. An official ceremony to appoint Mazouzi is expected later on Sunday, the two industry sources said.

OPEC member Algeria, a key gas supplier for Europe, failed to draw a lot of foreign investor interest in its most recent energy bidding round last year. Oil companies have complained about offer terms and bureaucratic red tape.

But it needs foreign investment to help ramp up stagnating energy production. Oil output has been at around 1.2 million barrels per day (bpd) in recent years, though Sonatrach said this month it would increase production by at least 32,000 bpd from July by starting production at two fields.

Sonatrach has also been hit by a series of corruption scandals involving foreign partners in recent years.  

(Reporting by Lamine Chikhi; Writing by Patrick Markey; Editing by David Clarke)