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Sonatrach Sonatrach The Algerian Oil & Gas The Algerian Oil & Gas

Company Company

Sonatrach Sonatrach The Algerian Oil & Gas The Algerian Oil & Gas

Company Company

DCG SPE

may 2005

NOT AN OFFICIAL UNCTAD RECORD

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Some figures about Algeria

The role of the Hydrocarbon Industry

Company‘s Profile

Some figures in the year 2004

Primary, Marketed Production &

Investment evolution over the medium term

New gas grid from Algeria to Europe

Recent developments

Outline

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Second African country in

size, with an area of 2.4 Million

Sq.Km.

Strategic geographic

location, at the crossroads of

African, Arabic, and

Mediterranean worlds

30 Million inhabitants, mostly

young and educated

Algeria

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The hydrocarbon industry accounts for around 36% of

GDP

Proceeds from hydrocarbon exports cover 98 % of hard

currency resources of the country

More than half (70%)of the state budget is funded by oil

and gas tax revenues

150 000 employees work for the oil and gas industry

The Hydrocarbon Industry plays an important role in the Algerian Economy

The Weight of the Hydrocarbon Industry in the Algerian Economy

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The mission of Sonatrach is three fold: to meet Algeria’s present and future hydrocarbon needs

to maximize the long-term value of Algeria’s hydrocarbon resources

to contribute to the national development, mainly by providing the required hard currencies

Sonatrach : The Algerian National Oil and Gas Company

Sonatrach was created in december 1963

( Piw ranking 2004 : 12th)

6

0

50

100

150

200

250

30019

58

1961

1964

1967

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

MToe

Crude oil Condensate Natural Gas LPG

Birth of Sonatrach

Mainly Gas Developments

Sonatrach

Gas & OilDevelopments

Sonatrach & Partners

Projected

Algeria’s Hydrocarbons Production : 1958-2009

The oil production decrease was mainly due to the external shocks of the 70's & the mid 80's

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GEM1983

GPDF

1996

LNG plants1990

2004In Salah 9 Bcm

ArzewArzew

SkikdaSkikda

2005In Aménas 6 Bcm

AlgiersAlgiersGL1K

1972

GK1

GL1Z/GL2Z1978,1981

GG1

GZ1GZ2

2003

GR22000

1988 Rhourde Nouss

GZ3

2007Lahnet 7 Bcm

Quartz. (RN+GT) 13 Bcm

Tinhert 3 Bcm2007

2003

Ohanet 5 Bcm

1976Gassi Touil

1995Hamra

1999

TFT

Hassi Rmel1961

1965Alrar

The Algerian Gas Industry (Current and New Projects)

GZ0GL4Z1964

GR1GR3

1988

2007

TankersCapacity(LNG m3)

Lalla Nsoumer

Berge Arzew

Mustapha Ben Boulaid

Larbi Ben M'hidi

Bachir Chihani

Didouche Mourad

Abane Ramdane

Hassi R'mel

145 000

138 000

125 260

129 700

129 500

126 473

126 190

40 850

961 973

GL4Z

GL1K

GL1Z

GL2Z

Liquefaction Plants

Capacity(Bcm/year)

1.5

8.0

10.5

10.5

Start up

1964

1972

1978

1981

New LNG Plant

Total

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Production 222 Mtoe including:

Oil & Condensate: 76 Mtoe Natural Gas : 144 Gm3

Transportation 15 844 km of operational pipelines (30 pipelines).

Liquefaction of NG : 41 Mm3

LPG Separation* : 8.4 MT Refining : 21.5 MT

Marketing : 159 Mtoe including:

Exports : 133 MtoeDomestic : 26 Mtoe

Some figures about Sonatrach (2004)

* : Including LPG from liquefaction plants.

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188202 202 206 212

223 230242 240

251 260

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

106 TOE

AAGR*= 3.0%

(*): Average Annual Growth Ratio.

Source: Sonatrach

Total Hydrocarbon production, 1999-2009

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117 122 118 121130 133

138 143 140151

164

1999 2001 2003 2005 2007 2009

735 106 TOE

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2119

18

24

32

18 18 1819

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1999 2001 2003 2005 2007 2009

93 G$ @ 19 $/bbl

Exports, 1999-2009

Values109 US$

Volumes106 TOE

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22 21 2224

26 2628 29 30 31

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1999 2001 2003 2005 2007 2009

150 106 TOE

73 73 7483

89 9096 98

104 104113

1999 2001 2003 2005 2007 2009

514 GDA

Domestic Consumption, 1999-2009

Values109 DA

Volumes106 TOE

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Total Investments, 1999-2009

1 999 2 000 2 001 2 002 2 003 2 004 2 005 2 006 2 007 2 008 2009

Upstream Transportation Downstream Support

G $USProjection over the medium term =24,5 G $US

3,9

2,6

3,6 3,7

5,1

6,3 6,5

4,4

2,32,4

3,4

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Total Investments – Achievements 2002 - 2004

2 7 1 3 8 9 5 0 7

3 0 1 02 2 8 1 2 0 1 8

4 9 0

7 3 5 8 1 7

1 5 71 1 4

2 0 0 2 2 0 0 3 2 0 0 4

E x p lo r a t io n U p s t r e a m ( D e v e lo p m e n t ) M id s t r e a m D o w n s t r e a m B u s in e s s D e v e lo p m e n t S u p p o r t

3 8 7 93 6 1 9 3 6 7 4

Unit:106 US$

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86% 82% 85% 85% 86%

6%7%

8% 7%7% 6% 6%

10%6%

2005 2006 2007 2008 2009

Upstream (E&P+ Transportation) Downstream Business Development Support

Total Investments over the medium term ( 24.5 109 US$)

5.1 6.3 6.5 4.4 2.3

Unit:109 US$

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The main new projects over the medium term

• Unité de traitement de brut Hassi Messaoud Sud

• Installations Revamping of Hassi Messaoud

• Rhourde-Nouss (CTH & R.chouff) Development project

• Ohanet Electrification / Electric Station Extension of Alrar

• Ligne 220 kv Rhourd Nouss-In Aménas

• GPL unit of Hassi Messaoud

• Compression unit of Hassi Messaoud

• Gassi Touil field Development project

• Tinhert field Development project

• Sud Est Illizi field Development project

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The main new projects over the medium term

• Condonsat Pipeline NK1 Haoud el Hamra-Skikda

• Gas Pipeline 1st phase Rhourde Nouss-Hassi R’mel

• Gas Pipeline (Medgaz/GZ) Hassi R’mel – BeniSaf

• New train LNG of Skikda

• Topping condensat of Skikda

• New train LNG of Gassi Touil project

• Unité d ’extraction d’hélium à Arzew

• Train de séparation de GPL à Arzew

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MEDGAZ

Sonatrach will develop in partnership new direct routes to Sonatrach will develop in partnership new direct routes to secure access to European markets at competitive costs.secure access to European markets at competitive costs.

Hassi R’Mel

Spain

Arzew

TMPC

ITALIE

Submarine Line Algeria-Italy

LiquefactionPlant 4-5 MT/y

LNG TANKERS

LNGJHK

Development of New Routes

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AlmeriaAlmeria

Beni SafBeni Saf

Hassi R’melHassi R’mel

•Hassi R’mel to Beni Saf (onshore pipeline/Algeria): Diameter : 48’’Diameter : 48’’Length : 547kmLength : 547km

•Flow rate : 8 Billions CmFlow rate : 8 Billions Cm33/y/y

PIPE PARAMETERSPIPE PARAMETERS

•From Beni Saf to Alméria (offshore pipeline) : Diameter : 24’’Diameter : 24’’Wall thickness : 31.8mmWall thickness : 31.8mmLength :200kmLength :200kmWatert depth : 2200 metersWatert depth : 2200 metersInlet pressure : 190 barsInlet pressure : 190 bars

New Gasline Algeria-Spain "MEDGAS"

- The feasibility study is achieved and showed

the obvious profitability of the project. - Currently, the realization company was set

up early in 2003.-The constructing works will start at the end of

2003 or early in 2004.

Comments

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•Flow rate : 7,6 Billions CmFlow rate : 7,6 Billions Cm33/y/y

PIPE PARAMETERSPIPE PARAMETERS

•Hassi R’mel to El Kala (onshore pipeline/Algeria): Diameter : 42’’Diameter : 42’’Length : 640kmLength : 640km

•ElKala to Cagliari (offshore pipeline) : Diameter : 24’’Diameter : 24’’Length : 310kmLength : 310kmWatert depth : 2150 metersWatert depth : 2150 meters

•Cagliari to Olbia (Sardaigna) : Diameter : 42’’Diameter : 42’’Length : 300kmLength : 300km

• Olbia to C.d.Pescaia (Offshore pipeline) : Diameter : 22’’Diameter : 22’’Length : 220kmLength : 220kmWatert depth : 900 metersWatert depth : 900 meters

CNDG

C.d.Pescaia

Olbia

El KalaEl Kala

New Gasline Algeria-Italy "GALSI"

- The feasibility study is in progress with

different operators: Sonatrach, Enel Power,

Wintershall, Edison Gas & EOS Energia

Comments

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Sonatrach’s International Focus

Développement champ de Camisea Pérou : Amont & pipeline

Espagne :-Unité de Regazéification & Co-gen.

Projets Amont E&PIrak Yemen Lybie MaliSoudan Afrique du Sud

Royaume Uni & Hollande: Trading de brut, GPL & GNL

Nigéria : Etude duProjet de gazoducNigal Abuja-Beni Saf

USA :Portefeuille d’actions- 5% in Anadarko- 2% in Duke Energy

Espagne :- Petrochem. Tarragona- Gestion du pricing des options Sahara Blend Sonacep (SH/Cepsa)