SonatrachThe Algerian National Oil & Gas Company

A Proven Experience in Hydrocarbon Business

2nd INDIA-AFRICA HYDROCARBONS CONFERENCENew Delhi December 7-8 / 2009

2nd INDIA-AFRICA HYDROCARBONS CONFERENCENew Delhi December 7-8 / 2009

2

GEOGRAPHIC LOCATION

Second largest african country, with an area of 2,4 Millions Sq.km;

Algeria : cross roads of african, Arab and mediterranean worlds;

36 Millions inhabitants mostly young

USA

EUROPEEUROPE

AlgeriaAlgeria

EUROPEEUROPEEUROPEEUROPE

AlgeriaAlgeria

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THE HYDROCARBONS IN THE ALGERIAN ECNOMY

The hydrocarbon industry accounts for around 46% of GDP

Proceeds from hydrocarbon exports cover 98 % of hard currency resources of the country

More than half 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

8%

46%

8% 5%

34%

GDP : 127 G US $

Agriculture

Services

Industry

Buildings & Construction

Hydrocarbons

4

The missions of Sonatrach are :

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 Company

Sonatrach was created in December 1963

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Core ActivitiesCore Activities

- Upstream- Transportation by pipelines- Downstream- Marketing

International ActivitiesInternational Activities

- Upstream- Transportation by pipelines- Downstream- Trading of hydrocarbon products- Shipping- Other Services

Affiliated Activities Affiliated Activities

- Refining (NAFTEC)- Petrochemicals (ENIP) - Domestic Distribution of Petroleum

Products (NAFTAL)- Hydrocarbons shipping (HYPROC)- Drilling (ENTP and ENAFOR )- Well Services (ENSP)- Geophysics (ENAGEO)- Construction (ENGTP, GCB)- Electricity & Desalination of Sea Water

(AEC)- Renewable (NEAL)- Training (Algerian Petroleum Institute)

SONATRACH : A Fully Integrated Company

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SONATRACH TODAY

Ranking in the World

1st Company in Africa 12th oil and gas company

Major energy supplier to the World

1st in LNG,

2nd in NGL & LPG

3rd Natural Gas Producer

Source: PIW Ranking & PFC 2007

7From 1986 to 2009, signing of 94 contracts in partnership

Algerian Mining AreaAlgerian Mining Area

Exploitation SH1%

Exploitation (Partenariat)

2%Exploration (Partenariat)

9%

Exploration (Effort propre)

15%

Prospection35%

Domaine minier libre38%

03%

Exploitation

643 110.63 Km²Domaine Minier Libre

910 377.37 Km²

24 %•15 % Sonatrach •9% Sonatrach & Partners

35 %

Sonatrach Activity Area

1 553 488 Km²ExplorationProspection

National Mining area of Hydrocarbons

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Natural Gas51 %

Crude Oil34 %

Condensate10%

LPG5 %

HYDROCARBON RESERVES

1971: 4.3 Billions TOE 1971: 4.3 Billions TOE 2008: 4.2 Billions TOE 2008: 4.2 Billions TOE

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Fields in exploitation 13

Wells in exploitation 500

daily production 500 . 106 Sm3

gas injection 40%

GAS POTENTIAL

10

16 natural gas treatment plants

24 associated gas recovery plants

19 gas compression and injection stations

more than 120 turbines installed

total power over 2000 MW.

UPSTREAM GAS FACILITIES

11

13851385NARUREL DEPLETION

30%30%

31343134

ENHANCED RECOVERY

70%70%

GAS RESERVES DEVELOPMENT MODEL (BCM)

12

NARURAL DEPLETION

ENHANCED RECOVERY

653653

18%18%

30083008

82%82%

OIL RESERVES DEVELOPMENT (Million CM)

13

PRODUCTION EXPORTATION

EXPORTATION

70%

DOMESTIC MARKET30 %SALES

60 %

SALES

60 %

Reinjection

40 %

Reinjection

40 %

NG

60 %

NG

60 %

LNG

40 %

LNG

40 %

GAS BALANCE

14

0

10

20

30

40

50

197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008

Bcm

0%

20%

40%

60%

80%

100%

Associated Gas Recovry Flaring/Production Ratio

79%

21%

2 bcm

21 bcm

43 bcm

9%

GAS FLARING REDUCTION

1515

Algeria’s Hydrocarbons Production : 1958-2009

0

50

100

150

200

250

300

1958

1961

1964

1967

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

Crude oil Condensate Natural Gas LPG

Birth of Sonatrach

Mainly Gas Developments

Sonatrach

Gas & OilDevelopments

Sonatrach & Partners

Projected

MMTOE

0

50

100

150

200

250

300

1958

1961

1964

1967

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

Crude oil Condensate Natural Gas LPG

Birth of Sonatrach

Mainly Gas Developments

Sonatrach

Gas & OilDevelopments

Sonatrach & Partners

Projected

MMTOE

16

0

20

40

60

80

100

120

140

160

180

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

IN ASSOCIATION

SONATRACH

Billions m3

La part de la production de gaz naturel en association a atteint 22% de la production totale de gaz naturel en 2008.

NATURAL GAS PRODUCTION 1962-2008

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Liquefaction Cap.: 42 MCM

LNG production 40 MCM

LPG separation 8.6 Mt

Refining Capacity: 22 Mt/Y

Exports : 131 Mtoe

Liquid:40 MToe NG: 35.5 BCM LNG: 39.6 MCM

Domestic Market: 30.8 MToe

30 pipelines of 16 200 km

North trans 166.7 Mtoe N. Gas: 85.2 BCM

South transp 78 Mtoe N. Gas: 28 BCM

Pumping & compression stations: 78

Storage capacity:3.4 millions cm

Discoveries 08 by Sonatrach 12 in Partnership

Discoveries type: 09 Oil discoveries. 11 Gas discoveries

Exploration wells 51 by Sonatrach 63 in Partnership

Seismic: 2D: total 13 526 Km 5 122 Km by

Sonatrach alone

3D: total 6 742 km2

3 235 Km2 by Sonatrach alone

Total Prod.: 233.3 MtoeOil & Cond.: 79.0 MtoeNatural Gas: 152.8 BCMLPG: 9.9 Mtoe

MarketingDownstreamMidstreamE&P

HYDROCARBON CHAIN : Main Achievements in 2008

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SONATRACH INVESTMENT PLAN OVER 2009-2013

Sonatrach investment plan over 2009-2013 :$63.5bn

Expansion of Algeria’s hydrocarbon reserves base through:

Intensification of exploration Enhanced Oil Recovery projects

Increase of production mainly through the development of new oil and gas fields,

Expansion of the oil and gas export capacity,

Expansion at the international level with investment in the fields’ development with the objective to reach a level of production of 120 000 boe/d in 2015.

Maximize the value of Sonatrach products : Petrochemical projects International trading More presence in the downstream, mainly

in the European gas and electricity markets

10%

27%

1%

62%

Upstream Transportation

Downstream Support

1919

MAINTAINING SONATRACH

POSITION ON THE EUROPEAN

MARKET

BUILDING A STRONG

POSITION ON THE ATLANTIC

BASIN

MOVING DOWNSTREAM IN THE GAS VALUE

CHAIN

A STRONG COMMITMENT TO EXPAND INTERNATIONNALLY

BOTH UPSTREAM AND DOWNSTREAM

1

2

3

4Strategy

Focus

SONATRACH AMBITION

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SONATRACH IN

THE INTERNATIONAL

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ALGERIA GAS EXPORTS : 85 Bcm in 2015

22

010203040506070

1983 1987 1991 1995 1999 2003 2007 2011 2015

GEM GPDF MEDGAZ GALSI

1983

19962004

2010

2015Capacity BCM

Years

TRANSPORTATION CAPACITYTRANSPORTATION CAPACITY

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476 476 xx 10 1099 SM SM33Transported VolumesTransported VolumesNovember - 2009November - 2009

May 10May 10thth,, 1983 1983 Starting DateStarting Date

ENRICO MATTEI GAS PIPELINE 48” GEM 1&2ENRICO MATTEI GAS PIPELINE 48” GEM 1&2

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NovemberNovember 1 1stst, , 19961996 Starting DateStarting Date

116 116 xx 10 1099 SM SM33Transported VolumesTransported VolumesNovember - 2009November - 2009

PEDRO DURAN FAREL GAS PIPE LINE 48” GPDFPEDRO DURAN FAREL GAS PIPE LINE 48” GPDF

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GAS LIQUEFACTION CAPACITY

0

5

10

15

20

25

30

35

40

45

1964 1971 1978 1981 2004 2010-2012

GL4Z GL1K GL2Z GL1Z SKIKDA GASSI TOUIL

January 2004 : loses of 50% of SKIKDA's

LNG capacity

Start up of 2 New LNG trains (5,45

and 6,2 BCM)

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A COMPETITIVE POSITION

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REGASIFICTION CAPACITY

Reganosa

2001Cove Point

2 BCM/2009

2

Isle Of Grain

5 BCM/2005

5M.

Bretagne1

BCM/20101

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SONATRACH 100% :

Mauritania (4 blocks).

Mali (1block).

Niger (1block).

Libya (1block)

SONATRACH in partnership :

Mauritania ( 2 blocks).

Mali ( 2 blocks).

Libya ( 2 blocks).

Tunisia ( 2 blocks).

Egypt ( 2 blocks).

LibyeEgypte offshore

Niger

Mali

Algérie

Tunisie

Mauritanie

E & P SONATRACH PROJECTS IN AFRICA

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• LOCATION :CAMISEA 431 km east of Lima

• Bloc 88 : San Martín & Cashiriari Fields

–Gas: 11 TCF (proved + probable)

–Liquids: 600 MM bbl

• Bloc 56 :Pagaroni & Mipaya Fields

–Gas: 3.7 TCF (proved + probable)

–Liquids: 238.8 MM bbl

PRODUCTION:

GAS: 1 BCF/day

Liquids: 100 000 bbl/day

SONATRACH PARTICIPATION:

UPSTREAM : 10 %

TRANSPORTATION : 21.18 %

CASHIRIARIMALVINAS

REGIONALREGIONAL MAP: MAP: BBLOLOCKSCKS 88 & 56 88 & 56

PAGORENI

MIPAYA

SAN MARTIN

NUEVO MUNDO

GAS DEVELOPMENT IN PERU

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SONATRACH : from Regional to Global player

Peru :Pipeline ProjectTransport of Oil & Gasfrom Camisea Field toLima & Callao

Development of the blocks 88 and 56 in Camisea

Spain:Reganosa (10%): RegasificationGEPSA(30%) : cogenerationCGC (30%) : Trading SGC (100%) : TradingPropanchem (49%): Petrochemical

Mali : 6 exploration blocks

Nigeria : Gas pipeline TSGP

Niger : 01Exploration block

Egypt : (20%) Exploration in 2 Offshore blocks

Mauritania:Mauritania: 3 exploration blocks

Libya :2 Exploration blocks in Ghadames basin

UK & Netherlands: Oil, LPG & LNG regasification & Trading

FranceTrading of LNG Italy

Trading of GasTunisia : 01 Exploration block

Korea :Crude oil storage capacities

Portugal: 2% of EDP25% in Power stations of

EDP (one in Spain)

USA :Regasification

Singapore :Trading

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