(Ecofin Agency) - In Algeria, Noureddine Bouterfa (photo), the head of state power firm Sonelgaz, has emerged as the new Energy Minister in a cabinet rearrangement, as the country is struggling to deal with the sharp drop in oil and gas revenues that have pressurized its finances.

Named by President Abdelaziz Bouteflika, the new energy minister will be replacing Salah Khebri, while junior budget minister Hadji Baba Ammi will replace Abderrahmane Benkhalfa at the Ministry of Finance, Algeria Press Service reports.

Bouterfa during the handover ceremony, urged the executives of the sector to come together to tackle the huge challenges faced by the sector, in a spirit of consultation.

So far, no reason has been disclosed for the changes as Algeria is making effort for its economy to recover and increase oil and gas production.

The country has taken some steps to cope with the declining income. This includes increasing subsidized fuel and electricity prices, reduction in infrastructure projects as well as the cutting of budget expenses.

This is the fifth time the cabinet has been reorganized since the Prime Minister, Abdelmalek Sellal took office in 2012. Salah Khebri and Abderrahmane Benkhalfa were brought in during the last cabinet reshuffle in May 2015 and had only spent a year in office.

Oil and gas account for 60% of Algeria's budget and almost 95% of exports. The country has a balance of around $140 million in foreign reserves, even though these have been dropping and energy revenues dropped by almost 50% in 2015.

Anita Fatunji