Algeria has replaced the CEO of its state oil and gas company, Sonatrach, in a move that highlights ongoing instability at the energy giant. Rachid Hachichi, who had held the position since October 2023, was dismissed after facing public scrutiny and criticism of his management approach. He has been succeeded by Noureddine Daoudi, an experienced figure within Algeria's hydrocarbons sector who previously led the national hydrocarbons agency Alnaft.
The leadership transition was formalized in an official ceremony presided over by Energy Minister Mohamed Arkab, though no specific reason for the change was provided. This decision underscores the persistent managerial instability at Sonatrach, which has seen five different CEOs since 2019. This turbulence continues despite the company's vital role in the Algerian economy, where the hydrocarbons sector finances 60% of the state budget and accounts for over 80% of export revenues.
The leadership change comes at a critical juncture for Sonatrach. The company recently announced 13 new oil discoveries made in the first eight months of the year while simultaneously expanding its international presence by resuming oil and gas exploration in Libya's Ghadames basin after a decade-long hiatus due to security concerns. For the European Union, a key market for Algerian gas, ensuring stability at Sonatrach remains essential for energy security, particularly as Europe continues to diversify its gas sources.
