Dhananjay Sharma CORPORATE PLANNING ESSAR OIL LIMITED -----------------OCTOBER 2009


After more than a century of rule by France, Algerians fought through much of the 1950s to achieve independence in 1962. Algeria's primary political party, the National Liberation Front (FLN), has dominated politics ever since. Many Algerians in the subsequent generation were not satisfied, however, and moved to counter the FLN's centrality in Algerian politics. The surprising first round success of the Islamic Salvation Front (FIS) in the December 1991 balloting spurred the Algerian army to intervene and postpone the second round of elections to prevent what the secular elite feared would be an extremist-led government from assuming power. The army began a crackdown on the FIS that spurred FIS supporters to begin attacking government targets. The government later allowed elections featuring pro-government and moderate religiousbased parties, but did not appease the activists who progressively widened their attacks. The fighting escalated into an insurgency, which saw intense fighting between 1992-98 and which resulted in over 100,000 deaths - many attributed to indiscriminate massacres of villagers by extremists. The government gained the upper hand by the late-1990s and FIS's armed wing, the Islamic Salvation Army, disbanded in January 2000. However, small numbers of armed militants persist in confronting government forces and conducting ambushes and occasional attacks on villages. The army placed Abdelaziz BOUTEFLIKA in the presidency in 1999 in a fraudulent election but claimed neutrality in his 2004 landslide reelection victory. Longstanding problems continue to face BOUTEFLIKA in his second term, including large-scale unemployment, a shortage of housing, unreliable electrical and water supplies, government inefficiencies and corruption, and the continuing activities of extremist militants. The Salafist Group for Preaching and Combat (GSPC) in 2006 merged with al-Qaida to form al-Qaida in the Lands of the Islamic Maghreb, which since has launched an ongoing series of kidnappings and bombings - including high-profile, mass-casualty suicide attacks targeted against the Algerian government and Western interests. Algeria must also diversify its petroleum-based economy, which has yielded a large cash reserve but which has not been used to redress Algeria's many social and infrastructure problems.

Mauritania 463 km.5 times the size of Texas total: 6. sirocco is a hot. Tunisia 965 km. Morocco 1.GEOGRAPHY Location Geographic coordinates 28 00 N.comparative Land boundaries Coastline Maritime claims Climate . dust/sand-laden wind Northern Africa. Western Sahara 42 km 998 km territorial sea: 12 nm exclusive fishing zone: 32-52 nm arid to semiarid. drier with cold winters and hot summers on high plateau. dry summers along coast.381.559 km. wet winters with hot.741 sq km land: 2. bordering the Mediterranean Sea. Mali 1.741 sq km water: 0 sq km slightly less than 3. between Morocco and Tunisia Area .381. Niger 956 km. 3 00 E Map references Africa Area total: 2.376 km.343 km border countries: Libya 982 km. mild.

some mountains. mudslides and floods in rainy season soil erosion from overgrazing and other poor farming practices. and fertilizer runoff.003 m petroleum. soil erosion. discontinuous coastal plain lowest point: Chott Melrhir -40 m highest point: Tahat 3. petroleum refining wastes. dumping of raw sewage. lead.55% (2005) 5. uranium. narrow. natural gas. inadequate supplies of potable water Elevation extremes Natural resources Land use Irrigated land Total renewable water resources Freshwater withdrawal (domestic/industrial/agricultural): Natural hazards Environment .3 cu km (1997) total: 6.690 sq km (2003) 14. in particular.especially common in summer Terrain mostly high plateau and desert. phosphates. zinc arable land: 3.17% permanent crops: 0. desertification.07 cu km/yr (22%/13%/65%) per capita: 185 cu m/yr (2000) mountainous areas subject to severe earthquakes.current issues . Mediterranean Sea. becoming polluted from oil wastes. iron ore.28% other: 96. and other industrial effluents is leading to the pollution of rivers and coastal waters.

) 30 0-14 years: 25.436.976.259. Climate Change.777.000 population (2009 est.Environment .29 migrant(s)/1.3 years female: 26.000 population (2009 est.618) 65 years and over: 5.) Birth rate 4.4% (male 4. Law of the Sea.729) 15-64 years: 69.) Population growth rate 16. Wetlands agreements party to: Biodiversity.8 years (2009 est.5% annual rate of change (2005- Median age .note PEOPLE Population Age structure 34.) Death rate -0.9 births/1. Ozone Layer Protection.576/female 928.) Net migration rate Urbanization urban population: 65% of total population (2008) rate of urbanization: 2.) total: 26.000 population (July 2009 est. Environmental Modification.) 1.196% (2009 est.965/female 11.178.64 deaths/1. but not ratified: none of the selected agreements second-largest country in Africa (after Sudan) Geography .188 (July 2009 est. Desertification. Climate Change-Kyoto Protocol. Ship Pollution.1% (male 798. Hazardous Wastes.6 years male: 26.5% (male 11.709) (2009 est.591/female 4. Endangered Species.

79 children born/woman (2009 est. European less than 1% note: almost all Algerians are Berber in origin. the minority who identify themselves as Berber live mostly in the mountainous region of Kabylie east of Algiers. Berbers have long agitated.45 deaths/1.) Total fertility rate HIV/AIDS . note .86 male(s)/female total population: 1.) noun: Algerian(s) adjective: Algerian Arab-Berber 99%.) Sex ratio at birth: 1.000 live births country comparison to the world: 80 male: 30.01 male(s)/female (2009 est.000 live births (2009 est.) total: 27.) 1.000 (2007 est.10 est.000 (2007 est. sometimes violently. not Arab.35 years female: 75.73 deaths/1. the government is unlikely to grant autonomy but has offered to begin sponsoring teaching Berber language in schools 0.02 male(s)/female 65 years and over: 0.people living with HIV/AIDS HIV/ prevalence rate HIV/AIDS .no country specific models provided (2007 est.86 deaths/1.Deaths Nationality fewer than 1.77 years (2009 est.000 live births female: 24.04 male(s)/female 15-64 years: 1.) Infant mortality rate Life expectancy at birth Ethnic groups .1%.) 21. the Berbers are also Muslim but identify with their Berber rather than Arab cultural heritage.05 male(s)/female under 15 years: 1. for autonomy.) total population: 74.02 years country comparison to the world: 92 male: 72.

Bordj Bou Arreridj. Berber dialects definition: age 15 and over can read and write total population: 69. Ain Defla. El Oued. Blida. Ouargla. Djelfa. Saida. Jijel. Tamanghasset. Tiaret. Sidi Bel Abbes. Annaba. 3 03 E time difference: UTC+1 (6 hours ahead of Washington.) 5. Adrar.6% female: 60. Christian and Jewish 1% Arabic (official). Tindouf. Batna. M'Sila. El Bayadh.1% of GDP (1999) Education expenditures GOVERNMENT Country name conventional long form: People's Democratic Republic of Algeria conventional short form: Algeria local long form: Al Jumhuriyah al Jaza'iriyah ad Dimuqratiyah ash Sha'biyah local short form: Al Jaza'ir republic Government type Capital name: Algiers geographic coordinates: 36 45 N.1% (2002 est. Laghouat. Mascara. Tizi Ouzou. Chlef. Tissemsilt.9% male: 79.Religions Languages Literacy Sunni Muslim (state religion) 99%. Bechar. singular . Skikda. Souk Ahras. French. Khenchela. Medea. Bouira. Relizane. Constantine. Naama. El Tarf. Illizi. Biskra. DC during Standard Time) 48 provinces (wilayat. Tipaza. Setif. Alger. Ghardaia. Mostaganem. Mila. Tlemcen Administrative divisions . Oran. Guelma.wilaya). Oum el Bouaghi. Boumerdes. Bejaia. Tebessa. Ain Temouchent.

10 April 2002. Mohamed SAID less than 1% bicameral Parliament consists of the Council of Nations (Senate) (144 seats. Moussa TOUATI 2. note . Louisa HANOUNE 4. judicial review of legislative acts in ad hoc Constitutional Council composed of various public officials including several Supreme Court justices. prime minister appointed by the president election results: Abdelaziz BOUTEFLIKA reelected president for third term. has not accepted compulsory ICJ jurisdiction 18 years of age. one-third of the members appointed by the president.Abdelaziz BOUTEFLIKA 90. members elected by popular vote to serve five-year terms) elections: National People's Assembly .last held 28 December 2006 (next to be held in 2009) Legal system Legislative branch . revised 19 November 1976. the constitution requires half the council to be renewed every three years) and the National People's Assembly or Al-Majlis Al-Shabi Al-Watani (389 seats. and 12 November 2008 socialist. two-thirds elected by indirect vote to serve sixyear terms. Council of Nations (Senate) . universal Suffrage Executive branch chief of state: President Abdelaziz BOUTEFLIKA (since 28 April 1999) head of government: Prime Minister Ahmed OUYAHIA (since 23 June 2008) cabinet: Cabinet of Ministers appointed by the president elections: president elected by popular vote for a five-year term. effective 22 November 1976.a November 2008 constitutional amendment abolished presidential term limits. based on French and Islamic law. election last held 9 April 2009 (next to be held in April 2014). 1 November (1954) National holiday Constitution 8 September 1963. revised 3 November 1988.5 July 1962 (from France) Independence Revolution Day.4%.2%.2%. 28 November 1996. Djahid YOUNSI 1.last held 17 May 2007 (next to be held in 2012). Ali Fawzi REBIANE less than 1%.3%. 23 February 1989. percent of vote .

MIGA. WFTU. LAS. OPCW. independents 33. AU. AFESD. OAPEC. IMF. Rally for Culture and Democracy or RCD [Said SADI]. participation IOC. G-77.percent of vote by party . Socialist Forces Front or FFS [Hocine Ait AHMED]. independents 3. ITSO. ICC. Council of Nations .NA. organization IDB. seats by party . MONUC. IOM. WIPO. AfDB. Renaissance Movement or EnNahda Movement [Fatah RABEI]. IBRD. IFRCS. RCD 19. UNESCO. UNITAR. AMU. ICAO. RND 61. seats by party .FLN 29. PEARCE embassy: 05 Chemin Cheikh Bachir. UNIDO. ISO. Society of Peace Movement or MSP [Boudjerra SOLTANI]. WTO (observer) chief of mission: Ambassador Abdallah BAALI Diplomatic chancery: 2118 Kalorama Road NW. ILO.NA. ICRM. Washington. secretary general].election results: National People's Assembly .percent of vote by party . GInternational 24. WCO. Workers Party or PT [Louisa HANOUNE] note: a law banning political parties based on religion was enacted in March 1997 The Algerian Human Rights League or LADDH [Hocine Political pressure ZEHOUANE]. presidential appointees (unknown affiliation) 24. IPU. RND 12. WMO. PT 26. IDA. Interpol. UPU. Algerian National Front or FNA and [Moussa TOUATI]. El-Ibrahimi. WHO. UNHCR.FLN 136. G-15. National Democratic Rally (Rassemblement National Democratique) or RND [Ahmed OUYAHIA]. DC 20008 representation in the telephone: [1] (202) 265-2800 US FAX: [1] (202) 667-2174 Diplomatic chief of mission: Ambassador David D. UN. IMSO. FNA 13. OIC. ITU. NAM. RCD 1. OSCE (partner). El-Biar 16000 . IHO. MSP 3. AMF. MSP 52. UNCTAD. OPEC. OAS (observer). other 49. ITUC. note . FAO.Council seating reflects the number of replaced council members rather than the whole Council Supreme Court Judicial branch Political leaders parties Ahd 54 [Ali Fauzi REBAINE]. IAEA. ICCt (signatory). BIS. National Liberation Front or FLN [Abdelaziz BELKHADEM. National Reform Movement or Islah (formerly MRN) [Ahmed ABDESLAM]. IFC. IMO. UNWTO. SOS Disparus [Nacera DUTOUR] groups and leaders ABEDA. IFAD.

Algeria is running substantial trade surpluses and building up record foreign exchange reserves.3 billion (2006 est.) note: data are in 2008 US dollars .1 billion (2007 est. however. the crescent and star are also Islamic symbols. Algeria has decreased its external debt to less than 5% of GDP after repaying its Paris Club and London Club debt in 2006. and over 95% of export earnings. 408. accounting for roughly 60% of budget revenues.9 billion (2008 est. Alger-Gare. Sustained high oil prices in recent years have helped improve Algeria's financial and macroeconomic indicators. Algeria has the eighthlargest reserves of natural gas in the world and is the fourth-largest gas exporter. P. five-pointed star within a red crescent centered over the twocolor boundary. Structural reform within the economy. moves ahead slowly hampered by corruption and bureaucratic resistance. Real GDP has risen due to higher oil output and increased government spending. it ranks 15th in oil reserves. the colors represent Islam (green). has had little success in reducing high unemployment and improving living standards. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector. GDP (purchasing power parity) $232.) $225. a red. purity and peace (white).representation the US from Algiers mailing address: B. but the crescent is more closed than those of other Muslim countries because the Algerians believe the long crescent horns bring happiness ECONOMY Economy – overview The hydrocarbons sector is the backbone of the economy. 16030 Algiers telephone: [213] 770-08-2000 FAX: [213] 21-60-7355 Flag description two equal vertical bands of green (hoist side) and white. 30% of GDP. and liberty (red).) $218. such as development of the banking sector and the construction of infrastructure.

464 million (2008 est.) Public debt 9.1% of GDP (2008 est.4%.) $6. other 16% (2003 est.) 3.$159.4% (2008 occupation Unemployment rate 12.5% (2008 est. trade 14.5% (2008 est.600 (2006 est. industry 13.composition by sector Labor force Labor force .3% industry: 62.1% (2007 est.9% of GDP (2008 est.) $6.real growth rate 3.) $6.1% (2006 est.) GDP (official exchange rate) GDP . government 32%.) agriculture: 8.3% services: 29.) 11.8% (2007 est.) GDP .6%.) Investment (gross fixed) 26.) 9. construction and public works 10%.900 (2008 est.) 2.700 (2007 est.) agriculture 14%.) .7 billion (2008 est.per capita (PPP) GDP .

oats. cattle Industries petroleum. grapes. olives.91 billion KWh (2006 est. petrochemical.Inflation rate (consumer prices) 4.59 billion (31 December 2007) Agriculture – products wheat.) 33.) 26.) 382 million kWh (2006 est. fruits. natural gas. mining. light industries. food processing Industrial production growth rate 3. barley. sheep.5% (2008 est.36 billion (31 December 2008) $28. electrical.) 300 million kWh (2006 est.5% (2007 est.2% (2008 est.) $60. citrus.) 3.) Electricity – production Electricity – consumption Electricity – exports Electricity – imports .91 billion (31 December 2008) $55.12 billion KWh (2006 est.43 billion (31 December 2007) Stock of money Stock of quasi money $30.

Exports Natural gas .) 26.) $60. and petroleum products 97% Exports Exports – commodities .6 billion (2007 est.) 13.173 million bbl/day (2007 est.) 279.proved reserves Natural gas .7 billion cu m (2007 est.23 billion (2008 est.) $34.99 billion (2008 est.Oil – production Oil – consumption Oil – exports Oil – imports Oil .) 85.proved reserves Natural gas .) 4.) 1.844 million bbl/day (2005 est.) $30.) petroleum.6 billion (2007 est.Consumption Natural gas .110 bbl/day (2005 est.Imports Current account balance 2.production Natural gas .4 billion cu m (2007 est.79 billion bbl (1 January 2008 est. natural gas.) $78.) 0 cu m (2007 est.) 14.800 bbl/day (2006 est.3 billion cu m (2007 est.) 59.502 trillion cu m (1 January 2008 est.

8%.6%. Germany 5.6%. Italy 14.9%.1%.6%. 69.Exports – partners US 23.).) $11. France 8.5% (2008) Imports $39.) capital goods.957 billion (31 December 2007 est.162 billion (31 December 2008 est. Spain 11. 72.9%.) Debt – external $2. China 9%.061 (2004) Stock of direct foreign investment .647 (2006).4 billion (2007 est. Netherlands 4.) $1.7 billion (31 December 2008 est. Canada 9. 72.) $13.5 billion (31 December 2008 est. Italy 10. consumer goods Imports – commodities Imports – partners France 19.276 (2005).) $962 million (31 December 2007 est.) $26.76 billion (31 December 2008 est.) $3.25 (2008 est.16 billion (2008 est.9%.9 (2007). 73.6 billion (31 December 2007 est.4% (2008) Reserves of foreign exchange and gold $ abroad Exchange rates .) $ home Stock of direct foreign investment . Spain 7. foodstuffs.) Algerian dinars (DZD) per US dollar 63.91 billion (31 December 2007 est.

and Tunisia. Internet broadband services began in 2003 with approximately 200. France.000 subscribers in 2006 international: country code . Intersputnik. which remains low at less than 10 telephones per 100 persons.314 million (2008) 27. in 2005.COMMUNICAT ION Telephones . and Arabsat) (2007) . Spain. three mobile cellular licenses have been issued cellular Telephone system 3. Morocco.51 (Intelsat. microwave radio relay to Italy. a consortium led by Egypt's Orascom Telecom won a 15-year license to build and operate a fixed-line network in Algeria. satellite earth stations . is partially offset by the rapid increase in mobile cellular subscribership. the Middle East.main lines in use Telephones . participant in Medarabtel.563 million (2007) general assessment: a weak network of fixed-main lines.213. and Asia. landing point for the SEA-ME-WE-4 fiber-optic submarine cable system that provides links to Europe. the license will allow Orascom to develop high-speed data and other specialized services and contribute to meeting the large unfulfilled demand for basic residential telephony. in 2007. coaxial cable to Morocco and Tunisia. combined fixed-line and mobile telephone density surpassed 90 telephones per 100 persons domestic: privatization of Algeria's telecommunications sector began in 2000.

gas 477 (2008) Internet users 3.937 km.933 km. liquid petroleum gas 2.437 m: 19 914 to 1. shortwave 8 (1999) 46 (plus 216 repeaters) (1995) ) Internet country code Internet hosts .579 km (2008) Airports – with unpaved runways Heliports Pipelines .047 m: 11 2.437 m: 11 914 to 1.5 million (2007) TRANSPORTATION Airports Airports – with paved runways 143 (2009) total: 57 over 3.438 to 3.Radio broadcast stations Television broadcast stations AM 25.524 to 2.524 to 2.523 m: 5 under 914 m: 1 (2009) total: 86 2.648 km. FM 1.438 to 3.047 m: 3 1.523 m: 41 under 914 m: 23 (2009) 2 (2009) condensate 1.047 m: 29 1. oil 7.

085 km 1. Bejaia. Mostaganem.274 km (2004) total: 33 country comparison to the world: 83 by type: bulk carrier 6. passenger/cargo 3. Jijel. ANP).888 km 1. QJJ). Navy of the Republic of Algeria (Marine de la Republique Algerienne.028 km (includes 645 km of expressways) unpaved: 32. MRA). Skikda Roadways Merchant marine Ports and terminals MILITARY Military branches People's National Army (Armee Nationale Populaire. liquefied gas 9.Railways total: 3.973 km country comparison to the world: 44 standard gauge: 2. Air Force (Al-Quwwat al-Jawwiya al-Jaza'eriya. roll on/roll off 2 foreign-owned: 18 (Jordan 7. petroleum tanker 4. Arzew.055-m gauge (2008) total: 108. cargo 8.302 km country comparison to the world: 39 paved: 76. Territorial Air Defense Force (2009) . Land Forces (Forces Terrestres.435-m gauge (283 km electrified) narrow gauge: 1. Annaba. FT). Djendjene. UK 11) (2008) Algiers. chemical tanker 1. Oran.

exiled in Algeria. dormant disputes include Libyan claims of about 32.473 females age 16-49: 8. represents the Sahrawi Arab Democratic Republic.158 (2009 est.978 (2008 est.3% of GDP (2006) TRANSNAT IONAL I SSUES Disputes – international Algeria.317.) Manpower reaching militarily significant male: 375. conscript service obligation .852 age annually female: 362.) Military expenditures 3. rejects Moroccan administration of Western Sahara.18 months (6 months basic training.367.736.590. Algeria's border with Morocco remains an irritant to bilateral relations. Algeria remains concerned about armed bandits operating throughout the Sahel who sometimes destabilize southern Algerian towns. and many other states. each nation accusing the other of harboring militants and arms smuggling.757 females age 16-49: 9.) Manpower fit for military service males age 16-49: 8.005 (2009 est.000 sq km still reflected on its maps of southeastern Algeria and the FLN's . the Polisario Front. 12 months civil projects) (2006) Manpower available for military service males age 16-49: 9.Military service age and obligation 19-30 years of age for compulsory military service.

assertions of a claim to Chirac Pastures in southeastern Morocco refugees (country of origin): 90. Algeria still lacks victim protection services. Algerian children are trafficked internally for the purpose of domestic servitude or street vending tier rating: Tier 3 . mostly living in Algerianpersons: sponsored camps in the southwestern Algerian town of Tindouf) IDPs: undetermined (civil war during 1990s) (2007) Trafficking in persons: current situation: Algeria is a transit country for men and women trafficked from sub-Saharan Africa to Europe for the purposes of commercial sexual exploitation and involuntary servitude. the government again reported no investigations of trafficking of children for domestic servitude or improvements in protection services available to victims of trafficking. and its failure to distinguish between trafficking and illegal migration may result in the punishment of victims of trafficking (2008) .Algeria did not report any serious law enforcement actions to punish traffickers who force women into commercial sexual exploitation or men into involuntary servitude in 2007.000 (Western Refugees and internally displaced Saharan Sahrawi.

Gulf Keystone.2 billion barrels 2. Hassi Berkine. Algiers. Major Oil/Gas Ports Foreign Company Involvement Major Oil Fields . BP. Cepsa.93 trillion cubic feet 6. Skikda. Repsol. Oran. BHP Billiton.9 billion kilowatthours 1. Gassi El Agreb/Zotti. Naftec – Operates and manages all refineries. Naftel – Domestic product distribution.8 metric tons 0. Total. Petronas. Bejaia. Annaba.5 quadrillion Btu* 47. Rosneft. Arzew (Algeria’s largest crude oil export port). 2009E) Natural Gas Production (2007E) Natural Gas Consumption (2007E) Electricity Installed Capacity (2007E) Electricity Production (2007E) Electricity Consumption (2007E) Total Energy Consumption (2007E) Total Per Capita Energy Consumption (2006E) Energy Intensity (2007E) 12.5 gigawatts 33.229 thousand barrels per day 299 thousand barrels per day 450 thousand barrels per day 159 trillion cubic feet 3.1 billion kilowatthours 26.493 Btu per 2000$*** Environmental Overview Energy-Related Carbon Dioxide Emissions (2007E) Per-Capita. EnergyRelated Carbon Dioxide Emissions (2006E) Carbon Dioxide Intensity (2006E) 93. Agip. Maersk. Energy Overview Proven Oil Reserves (January 1.2 million metric tons 2. Hassi Messaoud. Gaz de France. Statoil. Bir Hebaa. Talisman. Anadarko. Eni.4 metric tons per 2000$*** Oil and Gas Industry Organization Sonatrach – State-owned company for exploration. plus the Tunisian facility of La Skhirra. transport and marketing of petroleum. 2009E) Oil Production (2008E) Oil Consumption (2008E) Crude Oil Distillation Capacity (2009E) Proven Natural Gas Reserves (January 1. Ourhoud. natural gas and related products.ALGERIA ENERGY PROFILE-OIL AND GAS Algeria’s hydrocarbon sector accounts for 97 percent of export revenues.1 million Btu 6.03 trillion cubic feet 0. Cogiz – Produces natural gas by-products.

geothermal.000) * The total energy consumption statistic includes petroleum. Angola (1. and Norway. 400-mile Haoud el Hamra. Naftec-Arzew (60. Algeria's crude oil production can be constrained by the group’s crude production allocations.000 bbl/d of natural gas liquids.000). solar. Naftec-Algiers (60. **GDP figures from Global Insight estimates based on purchasing power parity (PPP) exchange rate Background Algeria is an important exporter of oil and natural gas and is a member of the Organization of the Petroleum Exporting Countries (OPEC). Naftec-Hassi Messaoud (30. Domestic oil consumption accounted for about 13 percent of total production.Skikda Naftec-Skikda (300. Rhourde Chouff. and Libya (1. bbl/d) Menzel Ledjmet Hassi R’Mel.03 trillion cubic feet of natural gas in 2007. Algeria produced 3.94). dry natural gas. Rhourde Hamra fields. nuclear. 498-mile and 511-mile parallel lines Haoud el Hamra-Arzew. which are exempt from OPEC quotas. bringing total oil liquids production for the year up to a total of 2. Algeria was the sixth largest natural gas producer in the world in 2007 after Russia. 415-mile Haoud el Hamra-Bejaia. Rourde Nouss Sud-Est. of which 70 percent was exported and 30 percent was consumed domestically. As a member of OPEC. In 2008. but Algeria also produced 450. Rhourde Nouss. Canada. 482-mile In Amenas-La Skhirra. Algeria produced 1. coal. Algeria was the fourth largest crude oil producer in Africa after Nigeria (1.71) and the largest total oil liquids producer on the continent. wind.89). Iran. Tunisia. wood and waste electric power.Major Natural Gas Fields Major Crude Oil Export Pipelines Major Refineries (capacity.000).000). Rhourde Adra. net hydro. the United States.000 bbl/d of condensate and 357.23 million bbl/d. .42 million bbl/d of crude oil.

up from 2.17 million bbl/d in 2007.000 bbl/d of natural gas liquids. is among the highest quality in the world.OIL Algeria is net oil exporting country and a member of the Organization of Petroleum Exporting Countries (OPEC). Together with 450. and foreign oil producers have entered into numerous partnership agreements with Sonatrach. Algeria contained an estimated 12. According to Oil and Gas Journal (OGJ).42 million barrels per day (bbl/d) of crude oil in 2008.23 million bbl/d of total oil liquids production during 2008. Algeria’s largest proven reserves are located in the eastern half of the country. . Algeria has increasingly allowed greater foreign investment in the sectors. State-owned Sonatrach dominates oil and natural gas production in Algeria. the third largest in Africa (behind Libya and Nigeria). Algeria’s Saharan Blend oil.000 bbl/d of condensate and 357. European countries rely on Algerian oil to help meet increasingly stringent European Union regulations on sulfur content of gasoline and diesel fuel.2 billion barrels of proven oil reserves as of January 2009. Algeria averaged 2.1 percent sulfur content. 45° API and 0. Production and Development Algeria produced an average of 1.

Shell. and BG Group PLC on January 17. and 11 zones attracted no bids. Gazprom.000 bbl/d of crude in 2008. BP. Only four foreign firms won oil and gas exploration permits in December. As of the fourth quarter of 2008. Hassi Messaoud. Cepsa. This licensing round was the first to be held under the 2006 law that gives Algerian state-owned Sonatrach a mandatory minimum 51% share in every oil and gas exploration contract awarded to foreign companies. and pipelines still lacking. Zarzaitine. The largest foreign oil producer is Anadarko. Sonatrach has recently awarded new contracts to increase production over the next few years by developing new areas of the field and by adding a new LPG treatment plant. Conoco-Phillips. Additional foreign investors include: BG Group. Statoil and Total. Gazprom.Sonatrach operates the largest oil field in Algeria. Anadarko is developing seven new oil and natural gas fields in Block 208 of the Berkine Basin. Repsol. Hassi Messaoud produced around 400. Other major fields operated by Sonatrach include: Tin Fouye Tabankort Ordo. Foreign oil operators have steadily increased their share of Algeria's oil production. Many of Algeria's latest discoveries are being made in basins near In Salah in the southwest. Located southeast of Algiers. Algeria held a licensing round for foreign development of oil and natural gas reserves. . Eni operates (among others) the Rhourde Oulad Djemma (ROD) project in southeastern Algeria. Algeria is taking steps toward maintaining its oil production capacity by developing new oilfields to compensate for the decline in older fields. where reservoirs appear to be relatively small.000 bbl/d from the project.000 bbl/d. Energy Minister Khelil said that some of the new capacity would replace declines in older fields.000 bbl/d of crude oil and condensate. and Ait Kheir. In December 2008. a series of six satellite fields. Eni. In an interview in Vienna in March 2009. Eni's equity production at the end of 2008 was 84. and that Algeria's long-term target was to maintain crude oil production capacity at its current level. Algerian Energy and Mines Minister Chakib Khelil blamed the weak global economy for the mixed results of the 2008 licensing round during a signing ceremony for the four winning bidders. with total production capacity of more than 500. 2009. Ruhrgaz. ENI. Anadarko had gross oil production of 422. from its operation at the combined Hassi Berkine South and Ourhound fields in eastern Algeria. Haoud Berkaoui/Ben Kahla. with output projected to reach 150. Ruhrgas.000 bbl/d.

34 percent of Algeria’s 2007 oil exports to the Organization for Economic Cooperation and Development (OECD) countries went to European countries. and Germany and the United Kingdom (4 percent each).93 million bbl/d. . EIA estimates that the United States imported 547. This was 28 percent of Algeria's oil exports during 2008.000 bbl/d in 2008 and estimated net oil exports (including all liquids) reached 1.000 bbl/d from Algeria. oil imports in 2008. Algeria's domestic oil consumption was 299. Spain (5 percent). According to the International Energy Agency (IEA). or 4 percent of total U.S.Exports Algeria is a large oil exporter. France (6 percent). including the Netherlands (8 percent).

Naftec.000-bbl/d Arzew refinery produces products for domestic consumption and export. Sonatrach said in November 2008 that companies interested in building this refinery had been shortlisted and tenders would be issued in July or August of 2009. The 30. A new refinery is projected at Tiaret.000 bbl/d.000-bbl/d Hassi Messaoud refinery supplies products to southern Algeria. a subsidiary of Sonatrach. The coastal 60. While the 60.000-bbl/d Algiers refinery processes crude from Hassi Messaoud for consumption in the capital. • • • • The Skikda refinery (300. . to be completed in 2013. Algeria had total refining capacity of 450. operates Algeria's four refineries.000 bbl/d) provides the bulk of Algeria's refined products production.Downstream In 2009.

Tunisia. Algeria's oil pipeline network facilitates the transfer of oil from interior production fields to the export terminals. the longest in the country. Sonatrach has expanded the Hassi Messaoud-Arzew pipeline. the 415-mile Haoud el Hamra to Bejaia line. Algeria's major crude oil export pipelines are: the 498-mile Haoud el Hamra to Arzew pipeline. parallel line that more than doubles the capacity of the existing line. Algeria. Bejaia. Oran. the parrallel 511mile Haoud el Hamra to Arzew pipeline. LPG. including all of its NGL. and oil condensate exports. Skikda. and the 400-mile Haoud el Hamra to Skikda pipeline. The most important pipelines carry crude oil from the Hassi Messaoud field to export terminals. Sonatrach operates over 2.Pipelines and Export Terminals Algeria uses seven coastal terminals to export crude oil.Net Oil Export Revenues Nominal ($B) Country Algeria Angola Ecuador Iran Iraq Kuwait Libya Nigeria Qatar Saudi Arabia UAE Venezuel a OPEC 2008 $69 $68 $10 $82 $60 $80 $57 $70 $38 $288 $89 $59 $971 2009 NA NA NA NA NA NA NA NA NA NA NA NA $559 2010 NA NA NA NA NA NA NA NA NA NA NA NA $675 Jan-Aug 2009 $25 $25 $4 $32 $23 $29 $21 $26 $14 $92 $31 $19 $340 2008 $56 $55 $8 $67 $49 $65 $46 $56 $31 $233 $72 $48 $786 Real (2000$B) 2009 NA NA NA NA NA NA NA NA NA NA NA NA $445 2010 NA NA NA NA NA NA NA NA NA NA NA NA $529 Jan-Aug 2009 $20 $20 $3 $26 $18 $23 $17 $21 $11 $74 $25 $15 $271 . the 482-mile In Amenas to La Skhirra. pipeline. Sonatrach announced in 2008 that US$5. Algiers. and La Skhirra in Tunisia. Annaba. Sonatrach also operates oil condensate and LPG pipeline networks that link Hassi R'mel and other fields to Arzew. Arzew handles about 40 percent of Algeria's total hydrocarbon exports.400 miles of crude oil pipelines in the country. These facilities are located at Arzew. to include a second. liquefied petroleum gas (LPG) and natural gas liquids (NGL).5 billion would be spent by 2012 on renovating and extending its domestic oil and gas pipelines. refined products.

940 $264 $483 $795 $10.411 Jan-Aug 2009 $574 $1.028 $10.469 $409 $33.647 $4.290 $15.143 $30.052 $7.803 $3.922 $3.304 $2.653 $145 $11.620 $2.516 $705 $926 2008 $1. Hassi R'Mel accounts for about a quarter of Algeria's total dry natural gas production.244 $2.226 $6.199 $563 $739 Natural Gas Algeria is a significant producer of natural gas and liquefied natural gas (LNG).797 Jan-Aug 2009 $719 $1.548 $211 $385 $634 $8.Per Capita Net Oil Export Revenues Nominal ($) Country Algeria Angola Ecuador Iran Iraq Kuwait Libya Nigeria Qatar Saudi Arabia UAE Venezuel a OPEC 2008 $2. discovered in 1956 and holding proven reserves of about 85 Tcf. .228 $505 $41.952 $9.242 $19.624 $1.014 $1.688 2009 NA NA NA NA NA NA NA NA NA NA NA NA $1.374 $595 $1.908 $2. Algeria had 159 trillion cubic feet (Tcf) of proven natural gas reserves (the eighth-largest natural gas reserves in the world) as of January 2009.735 $25.035 $5. Algeria's largest gas field is Hassi R'Mel.202 $8.324 $182 $14.253 $2. According to Oil and Gas Journal (OGJ).Algeria.207 2010 NA NA NA NA NA NA NA NA NA NA NA NA $1.176 Real (2000$) 2009 NA NA NA NA NA NA NA NA NA NA NA NA $1. The remainder of Algeria's natural gas reserves come from associated (they occur alongside crude oil reserves) and non-associated fields in the south and southeast regions of the country.574 $5.816 $2.404 $735 $1.516 2010 NA NA NA NA NA NA NA NA NA NA NA NA $1.

so pipelines connect to it from the country's major natural gas-producing regions. Repsol. Hassi R'Mel is the hub of Algeria's entire natural gas transport network.The country produced 3. The remaining natural gas is exported. have entered into numerous partnership agreements with Sonatrach. while state-owned Sonelgaz controls retail distribution. BP. The largest pipeline systems connect Hassi R'Mel to liquefied natural gas (LNG) export terminals along the Mediterranean Sea. 4. 1. much of it going to Europe and some to the United States. Statoil and Total. while a 360-mile. near Algiers. Eni. A 315-mile.03 Tcf of dry natural gas in 2007. and is the sixth-largest natural gas producer in the world and the second largest among OPEC-member countries after Iran. Domestic Pipelines Algeria's domestic pipeline system centers on the Hassi R'Mel natural gas field. and foreign gas producers.93 Tcf of dry natural gas in 2007. Algeria consumed 0. Algeria has increasingly allowed greater foreign investment in the sector. . which represented 60 percent of the country's total energy consumption in 2007.38-billion-cubic-feet-per-day (Bcf/d) system connects Hassi R'Mel to Arzew. State-owned Sonatrach dominates natural gas production and wholesale distribution in Algeria. There are also plans to allow foreign participation in the retail natural gas sector. A smaller pipeline (270 miles. The Algerian government has encouraged the domestic use of natural gas. including BHP-Billiton. 690 MMcfd/d) also runs between Hassi R'Mel and Isser.98-Bcf/d system connects Hassi R'Mel to Skikda.

An international consortium. also called Enrico Mattei) line runs from Hassi R'Mel. to mainland Italy. which connects Hassi R'mel via Morocco with Cordoba. the remaining one-third of total natural gas exports is exported in the form of LNG. 820-Mmcf/d Maghreb-Europe Gas pipeline (MEG.Exports Algeria's dry natural gas exports totaled 2. Completed in 1983 and doubled in 1994. The 670-mile. Almost two-thirds of Algeria's total natural gas exports currently move through two natural gas pipeline connections operating between Algeria and Europe. completed in 1996. also called Pedro Duran Farell). Morocco's SNPP.32Bcf/d Trans-Mediterranean (Transmed.10 Tcf in 2007. there are plans to construct an additional compressor station along the Transmed that could increase capacity to 3. operates the 1. and Sonatrach. where it ties into the Spanish and Portuguese natural gas transmission networks. Spain. 2. led by Spain's Enagas. .48-Bcf/d.17 Tcf in 2006.000-mile. via Tunisia and Sicily. down slightly from 2.

800mile natural gas pipeline from Warri. . In February 2009. compared with 844 Bcf in 2006. However. and then underwater to Piombino. The US$1.2 billion Medgaz is expected to be operating by September 2009. (NNPC) met in Lagos and disclosed they were close to finalizing plans for the $12 billion project. overland to Olbia. The Galsi pipeline. will have initial capacity of 770-990 MMcfd/d and is expected to be completed by 2012. Also in 2007. However. Sonatrach has LNG export contracts with Gaz de France. the immense length and possible sabotage are two deterrent risks to the project moving forward. Trans-Saharan Pipeline Sonatrach and the Nigerian National Petroleum Corporation aim to construct a 2.183 Bcf of re-gasified LNG in 2007. Italy's Snam. Spain. underwater to Cagliari. whose three facilities combined produced an estimated 1. Algeria's largest LNG export terminal is the Arzew facility. where it will be connected to the Italian national transfer network. Most of Algeria's LNG exports go to Europe: about 729 Bcf in 2007 compared with 800 Bcf in 2006. Algeria supplied 13 percent of OECD Europe's LNG imports. Spain.S. some 10 percent of total U. Sardinia. With the start-up of the Arzew GL4Z plant in 1964. Liquefied Natural Gas Algeria's LNG exports currently make up about one-third of the country's total natural gas exports and are expected to increase in the mid-term. Algeria exported 77 Bcf of LNG to the United States. the Skikda LNG plant is being rebuilt after an explosion in 2004 and is not expected to come back online until 2013. Nigeria to Hassi R'Mel. Algeria. Belgium's Distrigaz. with an eventual extension to France. Algeria became the world's first producer of liquefied natural gas (LNG). and Greece's DEPA. Galsi Pipeline The 560-mile Galsi pipeline will run from Gassi R'Mel to El Kal. The pipeline would utilize the proposed Medgaz and existing Transmed pipelines to carry Nigerian natural gas to European markets. currently under construction. Sardinia. Italy. Algeria is the fourth largest exporter of LNG (behind Indonesia. via Niger. exporting around 11 percent of the world's total in 2006. when the Skikda plant comes back online. Turkey's Botas. About 898 Bcf of LNG was exported in 2007. LNG imports for that year. In 2007. Algeria to Almeria. Primary customers are France. it was reported that representatives of Sonatrach and the Nigerian National Petroleum Corp. Other important terminals include Skikda and Algiers. and Turkey.There are three new pipelines under construction or in planning: Medgaz Pipeline The 120-mile Medgaz will link Beni Saf. with an initial capacity of 390 MMcfd/d.55 Bcf/d. increasing to 1. Spain's Enagas. Malaysia and Qatar).

(2007-08) Product LDPE LLDPE HDPE PP Demand Production 80 55 21 21 120 95 60 0 Imports 25 0 25 60 Polymer Sectors of Algeria LLDPE HDPE Others 26% Film 74% BM 19% OTHER 21% Film 44% IM 16% .Polymer Demand .

However. Few European and Egyptian based traders are operating in Algeria. Egypt are active in Algeria. Sorfert Algerie has commissioned Uhde in the supply of services . 2012 Company Algerian-Omani Fertilizer Co Alzofert Fertalge Fertial Fertiberia SA Sofert Algerie Grand Total Ammonia 1400000 660000 330000 1200000 1400000 4990000 Urea 2450000 420000 MTA 3850000 660000 420000 330000 1200000 2540000 9000000 1140000 4010000 Investments are been done by the above companies (in table) and will target the exports market from Algeria. many foreign companies have shown interest and are planning to invest in Algerian.PP Film 16% OTHER 18% IM 19% RAFFIA 47% Polymer growth in Algeria is about 6-7% per annum. Volumes produced or consumed in Algeria is very low. Algeria is very strategic for polymer production as cheaper feedstock is available and the proximity to European market makes it all the more attractive. Ammonia and Urea production. there are not very established trades operating in Algeria. with strong gas base and exploration. Fertilizer in Algeria There is no fertilizer production in Algeria. France and PPP Chemicals. Films and injection molding are the major the major sectors of polymer consumption in Algeria. Emerude Chemie. Consumption base is small but Algeria plans for big investments in the polymer production.

Italy. 2006. pumps.for a major fertilizer complex in Arzew. training manpower etc in fields like automobiles. etc. The company is investing $2 bn in the complex. India-Algeria Economic and Commercial Relations Hydrocarbon remains the backbone of the Algerian economy. plastic material. which will comprise two 2200 tonnes/day ammonia plants and a 3450 tonnes/day urea plant. automotive parts and pharmaceuticals form a good part of exports.1 M tonnes/y and the ammonia surplus of 750. Sorfert Algerie will use urea output of over 1. pharmaceuticals. Spain and some other European countries and the US dominate the Algerian market. However. A healthy trend of India's export to Algeria is that high value items like automobiles. know-how.$ 677 Mn Trade –Movement Algeria. there are companies which are helping Algerian entrepreneurs in setting up projects by supplying equipment. India has opportunities in almost all sectors of economy as the market is price sensitive Bilateral economic and commercial ties between India and Algeria are steadily improving but they are still below potentials.$ 28. Completion is due in 2011.43 Mn At present there are no joint venture projects between India and Algeria. France. Algeria imports almost all its basic requirements. The basket of Indian exports to Algeria is slowly diversifying from the traditional agricultural exports to automobiles. There will be numerous other facilities. two wheelers. textiles.000 tonnes/y to mainly for the supply export markets. electronic items. Algeria. light engineering items. technical inputs. In the light of the improved situation in Algeria and in view of the vast potential in this country Indian industries should have greater interaction with Algeria and make use of the opportunities. Majority of the hydrocarbon products are exported to EU countries and the US.India 2006. pharmaceuticals telecommunications etc. iron & steel. steel pipes. .

Due to availability of gas. IOC is.Indian Companies investment in Algeria There is no direct investment by any Indian company in Algeria. the project is economically viable. however. IOC IOC. Indian Oil had expressed its interest to pick up equity in Sonatrach’s new grassroots refinery project in Algeria. a company source said. the only Indian company with took some steps forward for investing in Algeria however. They are further expanding the capacities in Algeria. but globally surplus capacity situation make the investment unviable. Indian Oil Corporation was keen in investing in refinery and downstream in Algerian. interested in setting up a gas-based cracker and associated polymer complex in Algeria in a joint venture with Sonatrach. It was also interested in partnering with the Algerian firm as a long-term operator and service provider for its refinery project. IOC was also interested in the grassroots LAB refinery project in Algeria. Arcelor Mittal Steel Mittal steel has invested in steel plant in Algeria. IOC was shortlisted as one of the qualified bidders for Sonatrach’s refinery project. being commissioned by Algerian state-owned Sonatrach. It was indicated that IOC would get only 35% equity stake in the project. LIST OF OIL COMPANIES IN Aabar ABB Group Aker Kvaerner Subsea Boots and coots BP Amoco Corporation Edison Enel First Calgary Petroleums Ltd Gas de France Gazprom ALGERIA . The company (IOC) did not participate in the subsequent bidding process as Sonatrach was offering it a minority stake in the project. IOC is not willing to join hands with Sonatrach as a minority shareholder in the project. they have abandoned their plan to invest in the 15-million-tonne Greenfield refinery in Algeria. Earlier. It is understood that IOC may review its decision if Sonatrach accepts its demand.

S.Gulf Keystone Halliburton John Wood Group Lukoil Medgaz Mitsui Patch International Petroceltic PetroChina PTTEP RAK Petroleum Repsol YPF SA Saipem Sasol Schlumberger Oilfield Services Shell Oil Company Sonatrach Statoil Talisman Energy Inc TotalFinaElf XPD8 SOURCE Africa Energy Intelligence Africa Oil and Gas CIA World Factbook International Monetary Fund Oil and Gas Journal Petroleum Intelligence Weekly Platts Oilgram News Reuters News Service U. Energy Information Administration World Bank OPEC .

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