Algeria - The "Promos" Task Force.

Modernisation of Sonatrach and its subsidiaries was undertaken by executives in charge of six areas: (1) strategy under Mourad Preure; (2) legal and tax affairs under Lakehal; (3) information technology and systems under Reda Rahal; (4) exploration and production under Zouioueche; (5) finance under Ahmed Mostefaoui; and (6) human resources under Abdelmadjid Harbi. An external financing unit was set up under Rashid Smara to handle the group's overseas operations and expansions and open trading units. Nine central divisions had been established by early 1994 out of Sonatrach's main departments: Finance under Ahmed Mostefaoui; Research, Planning and Forecasting under Mohammed Hamel; International Co-operation and Partnership under Abdelatif Naas; Human Resources under Abdelmadjid Harbi, who was also acting director of the Communications and Corporate Image Department; Industrial Strategy and Innovation, under Hasni Tewfik; Partnerships (upstream within Algeria), Exploration and Production, under Hacne Yassine, aided by Abdelmajid Attar and other prominent upstream experts; Social Affairs, under Mokhtar Hassani; Centre for Excellence, under Abdelhamid Sebagh; and Public Relations, under Mohammed Amer Youcef. Bouhafs left Sonatrach in March 1995 and was succeeded by Zouioueche as president and CEO. But Zouioueche did not last long. As soon as Youcef Yousfi became energy minister in mid-1997, he removed Zouioueche and made his ally Abdelmajid Attar CEO of Sonatrach. Attar has since made many changes in Sonatrach (see profiles in DT 8). Aissa Benghanem: The President and CEO of Sonelgaz, the state's power and gas utility, Benghanem works closely with Attar. He has survived the changes made by Minister Yousfi since the latter came to the cabinet in late June 1997. He was appointed to this post in March 1995. He is also a member of the National Council of Energy (CNE), which is chaired by the president of the republic. Sonelgaz is to lose its monopoly over power generation, under a new law to be passed by parliament, as the government is to allow private power ventures (IPPs) to be established in Algeria. But Sonelgaz will remain the sole purchaser of power in the country (see DT 5). Benghanem is preparing the company to become profitable. After having let the kWh price drop in real terms for decades, Sonelgaz began in 1994 to raise it gradually. But after becoming its CEO in 1995, Benghanem raised the price at a rapid pace to reach AD 3 ($0.05) per kWh needed to cover costs. Now the company is to raise the price further to make profit, backed by Minister Yousfi.