Entreprise Tunisienne dActivits Ptrolires

Hammamet 25 September 2014

Tunisia Oil & GasSummit

Yassine MESTIRI Central production ManagerMember of the 2030 National Energy Strategy task force

1. History of the Energy Policy

2. Background Current Energy

3. Issues and Challenges

4. Key Areas of the Energy Strategy

5. Detailed presentations (topics)

2

Ministry of Industry de Energy & Mines

REPUBLIC OF TUNISIA

Direction Gnrale de lEnergie

E&PBrut & Gaz

Electricity & Gas

Refinery &Import PP

DistributionPP

During the 2000s :a structural deficit in the energy

balance The energy control is considered a pillar of

Tunisia's energy policy. Encouragement of the consumption of

natural gas

Years 60-80:Energy supply development and

implementation of the institutionalstructure of the energy sector: STEG(electricity and gas); STIR (refining) SNDP(distribution) and ETAP (exploration andproduction of hydrocarbons).

Mid-80s:Awareness of predictable energy deficit:

- integration of the component related to thecontrol of energy demand

- creation of the National Agency for EnergyManagement (ANME).

-

During the 90s:Establishment of several institutionalreforms / Entry of private investment inpower generation (IPP).

High penetration of natural gas

4000

4500

5000

5500

6000

6500

7000

7500

8000

8500

9000

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Ressources Demande-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Excdent nergtique Dficit nergtique

120% 100%

80%

1.67 Mtepen 2012

1,93 Mtep

en 2013

Ktep-pci

4,4 Mtep

71%28%

1%

1990

59%

40%

1%

2000 45%55%

2012

8,5 Mtep

Energy Mix based on Oil and Natural

Gas

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

El Borma

Ashtart

Adam

Sidi El Kilani

2012 Average production 67 000

barrels / day

Marginal Fields

Natural Depletion

8

0

1000

2000

3000

4000

500019

90

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

ktep

Usages finaux Production d'lectricit

27%

73%

Consommation 2012 :

5,4 millions TEP

Production 2012 :

2,8 millions TEP

47%53%

Gaz algrien

Production nationale

31%

16% Forfait fiscal en nature

Achats de gaz algrien

47%

Needs in 2012 are insured by Algerian gas

(import & tax package)

Taux de couverture nationale: 40%

39% gasoil

40% essence

21% GPL

60% of petroleum products needs are insured by

import

80% of the consumption of petroleum products involves three products: Diesel 50% Gasoline 17% Domestic LPG 14%

Faced with the new socio-political environment and a growing demand

for energy, the current energy system in Tunisia is at the heart of global

issues and is associated with unacceptable risks and challenges not

easily overcome and the challenges of different orders:

Strategic Issues = Security of supply

Economic Issues = Increase of compensation

Social & environmental issues = Energy shortage and quality of life

0

2

4

6

8

10

12

14

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Mtep

Prlvement fiscal Gaz algrien contractuel Sources nationales (actuelles + STGP)

Sources probables ( dvelopper) Demande hors Prod. Elec. Dem. globale "Tout gaz"

457 471 511 591660 451

6421198 1273

1203 14561658

22682859

3002

4914

2790

3797

4799

6405

5169

455 442 437 563 556 418498

968 878 9121033

1161

17572018

3139

4080

2638

33143650

4450

3381

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

total importations total exportations

Deficit in energy trade balance widened from the2008 crisis.

The deficit for the nine months 2013 = 1788 MD.

Source: INS

State subsidies (direct and indirect):

5 306 MD

43% for petroleum products,

41% for electricity,

16% for natural gas.

8903

DM 04+ $1+

DM 03+ semillim 01+

The depletion of national resources, coupled withincreased of the demand, lead Tunisia to engagein an energy transition by creating an energymodel that is currently based on the Gas toanother model that ensures:

Diversification of energy sources

Securing the supply of energy products.

1. Energy Resources and infrastructure development.

2. Strengthening Energy Efficiency

3. Diversification of Energy Resources: a. Development of Renewable Energy b. Intensification of hydrocarbons Exploration

4. Strengthening Electrical interconnections Maghreb countries / Mediterranean

5. Establishment of institutional and budgetary reforms in the energy sector and its reorganization

6. Strengthening of the North African and international cooperation (training, research and development and technology transfer)

NATURAL GAS

NO :

COALCOAL FOR

POWER GENERATION

PETROLEUM PRODUCTS

PETROLEUM PRODUCTS

RENEWABLE ENERGY

RENEWABLE ENERGY

ENERGY EFFICIENCY AND

SOBRIETY

ENERGY EFFICIENCY AND

SOBRIETY

GAZ IMPORT

2014-2015 2023

DISCOVERIESNO COAL FOR

POWER GENERATION

EXPLORATION ? YES: YES:

NO :

Rational Use of Energy (RUE)

32

petK

5.3petM

Significant development in the use of RE for electricity

generation: 30 % in 2030RE Capacity : 1 700 MW en 2020

3 700 MW en 2030

Development of other RE technologies

Solar Water Heating: 3,000,000 m of collectors in 2030

Water Pumping : 4,000 equipped wells in 2030

Auto-production Private

Public -Private

PartnershipPublic

3 700 MW

12 000 Millions DT

7,9

0

1

2

3

4

5

6

7

8

Gaz Fiscal

Chaal+ Elyssa + Nisr

Gaz du sud(STGP)

Gaz import

Gaz champsen exploitation

March total Gazoption Gaz max

BILAN OFFRE-DEMANDE DU GAZ NATUREL (M tep)

Mtep

4,4 M tep

DEMANDE DE GAZ MAXIMUM, TOUS SECTEURS CONFONDUS(Scnario "Gaz avec contribution modeste des EnR ")

vs RSERVES "PROUVES"

6,7

0

1

2

3

4

5

6

7

8

Gaz Fiscal

Chaal+ Elyssa + Nisr

Gaz du sud(STGP)

Gaz import

Gaz champsen exploitation

March total Gazoption Gaz si EnR 30%

BILAN OFFRE-DEMANDE DU GAZ NATUREL (M tep)

Mtep

3,2 M tep

DEMANDE DE GAZ TOUS SECTEURS CONFONDUSaffrente au Scnario "Gaz avec contribution volontariste des EnR "

vs RSERVES "PROUVES"

DEMANDE GAZ MINIMUM, TOUS SECTEURS CONFONDUS(Scnario "Charbon avec contribution volontariste des EnR ")

vs RSERVES "PROUVES"

4,2

3,9

0

1

2

3

4

5

6

7

8

Gaz Fiscal

Chaal+ Elyssa + Nisr

Gaz du sud(STGP)

Gaz import

Gaz champsen exploitation

March total Gazoption Charbonsi EnR 30%

BILAN OFFRE-DEMANDE DU GAZ NATUREL (M tep)

Mtep

NATURAL GAS

NO :

COAL

COAL FORELECTRICITY GENERATION

IMPORTED GAS

2014-2015 2023

DISCOVERIES ?NO COAL FORELECTRICITY GENERATION

EXPLORATION ? YES: YES :

NO :

INTERCONNECTION BETWEEN ITALY AND TUNISIA

The development of electricity trade with Europe enables:

reduce investment in productive infrastructure,

have instant rescue after incident on the national network

ensure an energy transit trade between the networks of neighboring countries and the European network

increase the ability to integrate renewable energy into the national electricity

13

23

Nawara concession is the only supply gas via the main new pipeline from the South. It is owned 50% to 50% ETAP & OMV.

The Final scheme consists of two parts:

A pretreatment unit in Nawara with capacity of 2.7 million m3 / day. Export Pipeline for wet gas diameter 24 inches and a length of 370 km

from Nawara up Gabes GTP. (10 million m3 / d) A final treatment unit in Gabes (Gabes GTP) of 2.7 million m3 / day

Export Pipeline for wet gas diameter 12 'in length and 70 km from thePK243 pipeline 24 inches to GTP Tataouine (2 million m3 /d)

A final treatment unit in Tataouine 600 000 m3 / day LPG Bottling Unit of in Tataouine

Part

IPa

rt II

C3 C4

12-70 km GasExport pipeline to

Tataouine

GTPTataouine

GPL Bottling Plant

Condensate to Gabes

To STEG local grid

C5+

C1/C2

Bir Ben Tartar

Tataouine

Mdenine

Nawara

Kammour

PK 243

GTP GABES GTP TATAOUINE

Designation UnitsGTP Inlet m3/ Day 2 100 000 600 000

Fuel Gas Consumption m3/ Day 120 000 30 000

Sales gas m3/ Day 1 900 000 540 000

HHV Kcal/Nm3 9,892 9,892

WI Kcal/Nm3 12,606 12,606

Commercial Propane Tons / Day 129 37

Commercial Butane Tons / Day 77 22

Stabilized condensate Tons / Day 17 5

Total LPG products Tons / Day 206 59

Part I Nawara to Gabes:- Pipeline purchased and section valves ordered- EPC Nawara CPF, Pipeline Construction & EPC Gabes

GTP contracts awarded- Gabes GTP land purchased & prepared

Part II Nawara Pipeline to Tataouine:- Tender documentations prepared for call for bid for

Pipeline material, Section Valves, EPC Tatouine GTP- Tender documentation for Pipeline Construction &

EPC Bottling unit ready by mid October 2014.- Tataouine GTP land secured.

First Gas for both parts of the Nawara Project Sept. 2016

04

Objective: Joint government / industry initiative to evaluate the feasibility of

shared or hub facilities to separate and dispose of inert and acid gas produced from Gulf of Gabes

Consortium Members: DGE ETAP PA Resources Tunisia BG Tunisia Joint Oil Sonde Resources Tunisia STEG

42

New discovery

New platformNew pipeline

Hub facility to sequester

CO2

Key principle - Minimise development costs through:1. Maximum use of existing infrastructure2. Appropriately sized hub facilities at right point in value

chain

Options for CO2 sequestration:Pre-processing (offshore or onshore)During processingPost power generation

44 BM

ngised fo sisaB :2 esahP

54

64 BM

dleiF TARAZ

74 BM

84 BM

nwodwolB smroftalP dexiF

Diapositive numro 1Diapositive numro 2Diapositive numro 3History of the Energy Policy Resources and primary energy consumptionDiapositive numro 6Diapositive numro 7Diapositive numro 8Diapositive numro 9Diapositive numro 10Diapositive numro 11Petroleum ProductsStructure of ConsumptionDiapositive numro 13Diapositive numro 14Diapositive numro 15Evolution of the energy trade balanceDiapositive numro 17Diapositive numro 18Effect of oil prices and the exchange rate on the state budgetNEED OF ENERGY TRANSITIONDiapositive numro 21Diapositive numro 22Diapositive numro 23Diapositive numro 24Diapositive numro 25Diapositive numro 26Diapositive numro 27Diapositive numro 28Diapositive numro 29Diapositive numro 30Diapositive numro 31Diapositive numro 32Nawara ProjectDiapositive numro 34Diapositive numro 35Diapositive numro 36Diapositive numro 37Diapositive numro 38Diapositive numro 39Diapositive numro 40Diapositive numro 41Diapositive numro 42Diapositive numro 43Phase 2: Basis of designDiapositive numro 45ZARAT FieldZarat Development ProjectFixed Platforms BlowdownThank you for your attention