Algeria's oil exports grew from US$ 40 Billion in September 2006 to US$ 45 Billion by October 2006, said Chakib Khelil, Energy & Mining Minister of Algeria. For 2005, exports accounted for US$ 45.6 Billion

Oil revenues increased due to significant rise in petroleum prices. Revenues are expected to increase in November & December but will not experience the same growth, as OPEC (Organization of Petroleum Exporting Countries) has agreed to curb oil production by 1,200 million barrels a day.

This will bind Algeria to slash oil output by 59,000 barrels a day. A further cut in production is also possible during the next OPEC meeting to be held in mid-December, the minister said.

Algerian oil revenues are likely to continue an upward trend to reach US$ 54 Billion by the end of 2006, boosted by oil price stabilization after sliding two months and strong oil & gas demand from China.

Algeria's oil & gas sectors have remained considerably strong in last several years & the economy is showing some positive signs of growth. Export revenues from oil & natural gas account for 95 % of total revenues from exports, about 70 % of overall fiscal revenues & 40 % of GDP (Gross Domestic Product). Combination of high oil prices & strong net exports has resulted in high export revenues from oil since 1999.

"In the years to come, Algeria's oil output capacity is expected to increase as the nation looks to raise investments in development & exploration efforts. Assuming a negligible rise in local demand, Algeria can continue to serve as a net oil exporter for a long time", said an analyst at RNCOS.

He further added, "Moreover, the country has tremendous potential to become key energy source for European nations and, therefore, benefit significantly as oil & gas prices are expected to rise further."