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Petroleum

Modernisation of Sonatrach and its Subsidiaries: A Complex Web of Reorganisation and Succession

Strategic Insights

— 1 min read

The modernisation of Sonatrach, Algeria's national oil and gas company, involved a complex restructuring under the leadership of several executives. By early 1994, nine central divisions had been established, including Finance, Research, Planning and Forecasting, and Industrial Strategy and Innovation. The reorganisation was overseen by executives in charge of six key areas, each led by a high-ranking official. However, the changes did not last, as the appointment of a new energy minister, Youcef Yousfi, led to a shift in leadership, with Abdelmajid Attar replacing Zouioueche as CEO of Sonatrach in mid-1997.

Key Takeaways:

  • By early 1994, nine central divisions had been established within Sonatrach, including Finance, Research, Planning and Forecasting, and Industrial Strategy and Innovation.
  • The reorganisation was overseen by executives in charge of six key areas, each led by a high-ranking official, including Mourad Preure (strategy), Lakehal (legal and tax affairs), and Ahmed Mostefaoui (finance).
  • Abdelmajid Attar replaced Zouioueche as CEO of Sonatrach in mid-1997, following the appointment of new energy minister Youcef Yousfi.
  • Aissa Benghanem, President and CEO of Sonelgaz, works closely with Attar and has survived changes made by Minister Yousfi since 1997.
  • Benghanem is preparing Sonelgaz to become profitable, with plans to raise the kWh price to AD 3 ($0.05) per kWh to cover costs and make a profit, backed by Minister Yousfi.

Statistics:

  • By early 1994, nine central divisions had been established within Sonatrach.
  • Sonelgaz, under Benghanem's leadership, let the kWh price drop in real terms for decades, but began to raise it gradually in 1994.
  • By 1995, the kWh price had increased to AD 3 ($0.05) per kWh under Benghanem's leadership.
  • Sonelgaz is expected to raise the kWh price further to make a profit, with the support of Minister Yousfi.

Sources:

  • (Bouhafs leaving Sonatrach in March 1995)
  • (Zouioueche's appointment as president and CEO)
  • (Abdelmajid Attar's appointment as CEO of Sonatrach in mid-1997)
  • (Aissa Benghanem's appointment as President and CEO of Sonelgaz in March 1995)
  • (New law to be passed by parliament allowing private power ventures (IPPs) to be established in Algeria)

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