Opportunities in the Hydrocarbon Sector

1
ALGERIA: Mining Domain

• Surface of the mining

domain : 1 553 488 km2

• Offshore: 93 500 km2 (6%)

• Onshore: 1 459 988 km2

(94%)

• Activity being conducted on

slightly over 50% of the total
acreage.

• The activity is concentrated

in the Eastern region
covering the basins of
Berkine, Illizi, Oued Mya and
Amguid−Messaoud
 SONATRACH: An Integrated Company over the
entire value chain

Exploration & Pipeline

Downstream Marketing
Production Transportation

Subsidiaries
International
• Drilling (ENTP & ENAFOR)
• Well Services (ENSP) • Upstream
• Geophysics (ENAGEO) • Transportation
• Construction (ENGTP, ENGCB, …) • Downstream
• Distribution (NAFTAL) • Marketing
• Shipping (HYPROC) • Shipping
• Electricity and Seawater Desalination (AEC)
• Fertilizers (ASMIDAL, AOA, Fertial, OCI,.)
Sonatrach Corporate Profile : 2014 key figures

E&P Midstream Downstream Marketing

Discoveries (28) 32 pipelines of Liquefaction Capacity Exports 100 MTOE

27 by Sonatrach 19 623 km 60 MCM
01 in Partnership Liquid: 56 MTOE
North trans 147 MTOE LNG Production NG: 28 BCM
Exploration wells (113) N. Gas: 82 BCM 30 MCM LNG: 29 MCM
103 by Sonatrach
10 in Partnership Pumping & compression LPG Processing
Domestic Market 45 MTOE
Seismic acquisition stations 81 8 Mt
2D : total 6 700 Km
Out of which
6 300 Km by Sonatrach Storage capacity Refining Capacity
Natural Gas: 30 BCM
4.1 MCM (liquids) 25 Mt Oil
3D: total 13 700 km2
+ 5 Mt Condensate
11 300 Km2 by Sonatrach

Primary Production
Total: 196 MTOE Other Key
Oil & Cond.: 62 MTOE Figures
Natural Gas: 132 BCM
LPG: 8 MTOE Revenue
~ 60 billion USD

Employees
47 500
Evolution of discoveries from 2000 onward

Sonatrach Global performance (including partners)

35 31 32
29 29
30 27 28
27
24
25
20 20
19
20 17 16 16
15 12
9 9 9 9
10 7 8
6 6 5 5 56
5 4 4 3

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 nov.-
14
Evolution of Exploration Activity

450 35

400
30

350
25
300

250 20

200 15

150
10
100

5
50

0 0
2005 2006 2007 2008 2009 2010 2011 2012 2013

Volume (P1+P2) MTEP Number of discoveries

Partnership : Decisive Leverage in the Development
of the Algerian Hydrocarbons Sector
Sonatrach’s Medium Term Development Plan
Overall Investment 2015-2019 : $90 GUS

The main areas of activities

 strengthening the reserve base through an enhanced

Downstream
exploration program.. Midstream
 Field development aimed at increasing the level of production
to over 225 million TOE in 2019. 20% Support
8%
 Expansion of the pipeline transportation capacity in order to
1%
increase the transport capacity by 59 million TOE / year
 construction of new oil refineries and a fuel cracking unit at
Skikda. 71%
 Revamping of the Algiers and Hassi Messaoud Refineries.
 Development of the petrochemical industry.
 supply of the domestic market with LPG and fuels Upstream
Sonatrach’s Medium Term Development Plan
Exploration program

Areas of exploration:
1. Mature Basins (Illizi, Berkine, Oued Mya, and
Messaoud and Hassi R’Mel perimeter)
Hasssi
2. underexplored new zones in order to demonstrate R’Mel

Hasssi
the potential of less mature basins or "frontiers" Bechar Oued
Messaoud

Berkine 1
such as Bechar, Tindouf, Mouydir Chenachene, Mya
2
Tamesna ,Tafassasset …
Tindouf Illizi 3
3. Offshore & North Region
Mouydir
4. Appraisal of unconventional resources / Shale
Gas

Seismic acquisition :
 2D 10 000 km/ year
 3D 26 000 Km2/ year

Drilling:
> 125 Wells / year
Sonatrach’s Medium Term Development Plan
Increase the pace of activities in Research & Exploration
Ongoing program: Assessment of Unconventional Resources
Studies Cooperation According to EIA, Algeria is
agreements with
performed with
petroleum
credited with 707 Tcf of
consultants
companies Technically Recoverable
Reserves of shale gas

D&M 2010
• 3409 Tcf Mean Estimate
• 644 Tcf TRR (Silurian
only)
Future
areas for
study
Sonatrach’s Medium Term Development Plan
Development of New Fields
The Main Projects to Develop: aim to achieve a production level of 225 M TOE in 2019
In Mature Regions … and less Mature
… eg. Hassi Messaoud Region … eg. South West Region

 The development of oil fields in the vicinity of Hassi
Messaoud and Bir Berkine, Bir El M’Sena, CAFC oil, Bir
Sbaa, El Mzaid and Takouazet.
 The development of the gas fields of Tinhert, satellites MLSE,
periphery of Gassi Touil, fields of South In Salah, Bourarhat
North, Erg Issaouane, Tisselit North and Isarene.
 The development of gas projects in the South West
region : Akabli and Tidikelt, Timimoun, Touat ,
Reggane North , Ahnet , Hassi Mouina and Hassi
Ba Hamou
Medium Term Development Plan : LNG & LPG
Existing Liquefaction Capacities : 40 Million m3 LNG and additional : +20 Million m3 LNG
Existing LPG Processing Capacities : 10,4 Million Tons
G
GL1Z Arzew G
GL1K Skikda
1977 LNG
G 1972 LNG
17,56 Million m3 G
G 4,76 Million m3
G
G
GL2Z Arzew G
S G
1981 LNG GL2K
S
17,82 Million m3 2013 LNG
Biskra
S Tiaret 10 Million m3
GP1Z Arzew
1983 LPG

9 Million T

S Ghardaïa
GP2Z Arzew
1973 LPG

1,4 Million T

G
GL3Z
2013 LNG

10,5 Million m3

G LNG Unit
S LPG separation
 Medium Term Development Plan
Refining
The Revamping of the Algiers refinery … and The Construction of 3 New Units
Current Refining Capacity : 25 MTA (at the of end 2015) Additional Capacity: 13 MTA
O
O RA1K Skikda
RA1Z Arzew Target : 40 MTPA 1980 2013
1973 2013 N
15 000 16 500
2 500 3 750
O RA2K Skikda
N
O O O F 2009
RA1G Alger
5 000
1964 2015
O O
2 700 3 645 O RHM2
Biskra
Tiaret 1962
O
Raff. Adrar 1 070
2007 F
FO Craker Skikda
600
2017
O Ghardaïa 4 000
Raf. Tiaret
O
2017 Raf. Biskra
5 000 O O 2018

5 000

O
Raf. H. MD
2018

3 000
O Oil topping
N NGL topping
O
F Fuel Oil Craker

* including 5 MT NGL topping

 Medium Term Development Plan
Petrochimicals
CP1Z Arzew
1976/1978 Existing Asset Base Construction of new units
124

AOA1 Arzew • New Petrochemical plantCP1K

2013 Bis at Skikda.
Ammonia 1 300

Urea 2 300
• Dehydrogenation of Propane and
SORFERT2 Arzew Tiaret Biskra
production of Polypropylene
2013

Ammonia 1 500
(PDH/PP) in Arzew.
Urea 1 100
Ghardaïa
• Methanol & Derivatives plant in
FERTIAL3 Arzew
2005
Arzew.
Ammonia 330

NA/CAN 450

FERTIAL3 Annaba
2005

Ammonia 600

NPK 600

NA/CAN 300
CP2K Skikda
UAN 300 2005

130
1: JV w SGBH
2 : JV w OCI
3: JV ASMIDAL/FERTIBERIA
Upstream Business Opportunities : Engineering
SKID (Package) Facilities for Gas Production :
 Turbo-compression (Boosting)
 Turbo-Expander
 Dehydration
 Decarbonization
 Desulphurization
 Demercurization
 Multiphase Flowmeter
 Treatment of produced water
Facilities for oil production :
 Multiphase pumps
 Field processing Modules : separation, desalting, stabilization
 Treatment of oily water

Equipment Manufacturing & Services in Algeria :

- Rotating machine parts (Different types of mechanical seals, Impeller and wheels for
different types of pumps, Specific coatings (silk for bearing, shaft seats, etc…))

- Turbo-machinery (Manufacture of turbines and compressors, Manufacture of spare

parts, Overhaul of turbo-machinery Workshops, Control & Command System)
Upstream Business Opportunities : Research

Research :

- Development and modeling of rocks and clays rheology

- Provision of laboratories equipment, similar to SCAL laboratories (Conventional

Core Analysis) developed by BP in 2007, in HMD;

- Cooperation with leading universities and / or similar laboratories in research

projects , related particularly to the assessment and the exploitation of
unconventional reservoirs , reservoirs modeling, optimizing hydraulic fracturing
and the use of new drilling fluids
Upstream Business Opportunities : Training

Training :

- Collaboration for expertise training related to studies of air pollution, hazards

as well as environmental aspects pertaining to non-conventional resources
exploitation

- Specialized and / or graduated training in partnership with leading universities

and institutions

- Staff training in the field of command and control systems

- Cooperation in the field of training and technology transfer, in particular through

developing cutting-edge technologies such as : Seismic imaging , oil recovery
techniques, horizontal drilling , hydraulic fracturing
Downstream Business Opportunities

 Joint cooperation in the field of engineering

 Participation to the new refinery projects construction

 Participation to the reliability projects of the GL1Z & GL2Z units

 Cooperation in the field of Research & Development in the downstream,

including natural gas, LNG, LPG and refinery
Petrochemical Business Opportunities

 Realization of feasibility studies ( market , technology or process selection, )

 Realization of Front-End Engineering Design studies

 Engineering, Procurement and Construction (EPC) .

 Project Management Contractor – PMC

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