Algerian state energy conglomerate Sonatrach expects to earn about $81 billion in 2008 if oil prices stay high, Energy and Mines Minister Chakib Khelil said on Monday, following earnings of $59 billion in 2007.

'Sonatrach's revenue stood at $27.2 billion between January and April. I think that figure will reach $81 billion by the end of this year if prices remain at their current level,' he told reporters.

Khelil added that Algeria was expected to earn $2 billion in 2008 from a tax on windfall profits made by foreign oil companies operating in the north African country.

'This year we will earn $2 billion from the tax on windfall profits. I think the figure will be the same level as last year,' he told reporters.

Algeria passed a law in 2006 that imposes a windfall tax ranging from 5 to 50 percent on excess profits every time Brent crude averages over $30 a barrel.

The law also includes granting Sonatrach, Africa's biggest company by revenue, at least 51 per cent share in every oil and gas exploration contract awarded to foreign companies.

Khelil made no mention of the share of oil and gas earnings taken by foreign energy companies working in Algeria. In 2007, foreign partners earned about $3.9 billion from their operations in the hydrocarbon sector.

British Petroleum, Amerada Hess, Statoil, Anadarko Petroleum Corp., Repsol and Total are the main foreign companies involved in exploration and production of hydrocarbons in Algeria.

Algeria, the world's 15th-biggest oil reserves owner and a major gas supplier to Europe, produces around 1.4 million barrels of crude oil per day.

Its gas output is estimated at 62 billion cubic metres per year, and Algerian officials say they want to raise that to 85 billion cubic metres by 2010.-Reuters