SONATRACH

ROUND TABLE - 24TH JANUARY 2006

16TH SESSION OF WORKING PARTY ON GAS -UNECE

SONATRACHSONATRACH

ROUND TABLE ROUND TABLE -- 2424THTH JANUARY 2006 JANUARY 2006

16TH SESSION OF WORKING PARTY ON GAS 16TH SESSION OF WORKING PARTY ON GAS --UNECEUNECE

PARTPART--IISonatrachSonatrach Activities OverviewActivities Overview

&&DevelopmentsDevelopments

SONATRACH : A FULLY INTEGRATED COMPANY

Core activities

• E & P

• Transportation

• Downstream

• Marketing

Main Affiliates (100%) • Naftec (refining)• Enip (Petrochemicals)• Naftal (domestic Distribution of

Petroleum products) • Hyproc (hydrocarbons shipping)• SIHC (Sonatrach International)

International activities

• E & P

• Transportation

• Downstream

• Trading of Oil & Gas

• Shipping

Affiliated activities (51%)

• ENTP & ENAFOR (Drilling)

• ENSP (well Sevices)

• ENAGEO (Geophysics)

• ENGTP (Construction)

• ALGERIAN ENERGY COMPANY (50%)

SONATRACH CORE ACTIVITIES

EXPLORATION / PRODUCTIONEXPLORATION / PRODUCTION

SONELGAZ

LNG

INDUSTRIALUNITS

NA

TUR

AL

GA

S

LPG

HYDROCARBONS PROCESSINGHYDROCARBONS PROCESSING

MaghrebMaghrebEuropeEuropePipelinePipeline

TransTrans--MediterraneanMediterranean

PipelinePipeline

ButaneButanePropanePropaneHeliumHeliumNitrogenNitrogen

ExportExport

CR

UD

E O

IL

DISTRIBUTIONDISTRIBUTION

NG

L

MARKETING AND TRADING OF LIQUIDS AND GAS HYDROCARBONSMARKETING AND TRADING OF LIQUIDS AND GAS HYDROCARBONS

ExportExport

TRANSPORTATION BY PIPELINES

NA

TUR

AL

GA

S EX

PO

RT

SONATRACH MAIN OBJECTIVES

⇒ Pursue the dash of the hydrocarbons production growth started since 1991 with a rate of 3% per annum.

⇒ Pursue development of core business activities by:

Enhancing Hydrocarbons reserves

Increasing hydrocarbons production

Increasing hydrocarbons exports

SONATRACH – 2004 KEY FIGURES

ReservesReserves• Reserves : 141 Billions Boe• Proven Reserves : ≈ 40 Billions Boe

LPGNatural Gas

Crude Oil

Condensate

56%

9% 29%

6%

MarketingMarketing

Total Volume exported : 133.4 Mtoe• Crude Oil & NGL : 1.2 MB/d• Refined Products : 0.2 MB/d• Natural Gas : 3.4 Bcf/d• LNG : 2.4 Bcf/d• LPG : 0.2 MB/d

Domestic Market : 31.3 Mtoe

ProductionProductionTotal Volume : 223 Mtoe• Crude Oil & NGL : 1.6 MB/d• Natural Gas : 14.0 Bcf/d• LPG : 0.3 MB/d

Share of Total Gas Export

SONATRACH : A MAJOR GAS SUPPLIER

2004 Gas Export : 5.8 Bcf/d

FranceBelgium

USA

Turkey

Spain

SloveniaItaly

Portugal

Greece

4% 4%

22%

7%

42%1%

5%

1%

13%

59% by Pipeline and 41% LNG.

AlgeriaAlgeria

TunisiaTunisia1%

SONATRACH 2005-2010 INVESTMENTS

24 Billions US Dollars

Downstream : 7%

Environment & Others : 3%

Upstream : 48%Exploration.

Gas and oil field development.

Pipelines : 11%

Sonatrach : 70% Partners: 30%

From which:

HYDROCARBONS PRODUCTION PROFILE

Gas DevelopmentSonatrach

Oil & Gas developmentSonatrach & partners Forecast

0

50

100

150

200

250

300

1963

1970

1980

1990

1991

2000

2004

2005

2006

2007

2008

2009

Crude Oil NGL Natural Gas LPG

Creation ofSonatrach

Millions TEP

2015

300 MTEP

NATURAL GAS PRODUCTION PROFILE

Production Capacity by 2010

0

2

4

6

8

10

12

14

16

18

Bcf/d

2005 2010

Natural Gas

SH Share in SH Share in AssociationAssociation

SH SH

15%

82%

PartnersPartners3%

New exporttarget by 2010 : 85 BCM/YEAR

New exportNew exporttarget by 2010 : target by 2010 : 85 B85 BCMCM//YEARYEAR

18

exportsby 2005 :

60 BCM/YEAR

exportexportssby 20by 200505 : :

6060 BBCMCM//YEARYEAR

PARTPART--IIIIGAS TO POWERGAS TO POWER

NEW PROJECTS TO SUPPLY SOUTH OF EUROPE

MEDGAZ PROJECTDirect line Algeria–Europe via Spain(8 Bcm/year, starting 2008)

Partners : Sonatrach, Cepsa, BP,Endesa, Iberdrola, GDF, Total

MEDGAZ PROJECTDirect line Algeria–Europe via Spain(8 Bcm/year, starting 2008)

Partners : Sonatrach, Cepsa, BP,Endesa, Iberdrola, GDF, Total

Beni saf

AlmeriaMore than 80% of thecontracted volumes are linked to the power genaration in spain

More than 80% of thecontracted volumes are linked to the power genaration in spain

NEW PROJECTS TO SUPPLY SOUTH OF EUROPE

GALSI PROJECTDirect line Algeria–Italy via Sardinia(8 Bcm/year, starting 2009)Partners : Sonatrach, Edison, Enel,Wintershall, EOS Energia, Progemisa, Sfirs.

GALSI PROJECTDirect line Algeria–Italy via Sardinia(8 Bcm/year, starting 2009)Partners : Sonatrach, Edison, Enel,Wintershall, EOS Energia, Progemisa, Sfirs.

Volumes not yet allocated.Gas to Power will be significantif reffering to the basic activityof the project initiators.

Volumes not yet allocated.Gas to Power will be significantif reffering to the basic activityof the project initiators.

SONATRACH IN THE WORLD – Power Generation

SpainReganosa

(10%)

SpainGEPESA

(30%)

SpainMEDGAS

(20%)

ItalyGALSI (40%)

SONATRACH IN THE WORLD – Power Generation

SPAIN : SPAIN : Discussions for supplying CCGT Project andbeing shareholder 2000 MWDiscussions for supplying CCGT Project andbeing shareholder 2000 MW

ITALY :ITALY : Discussions for supplying CCGT Project andbeing shareholder 4000 MWDiscussions for supplying CCGT Project andbeing shareholder 4000 MW

PORTUGAL: PORTUGAL: Discussions for supplying CCGT Project andbeing shareholder 2500 MWDiscussions for supplying CCGT Project andbeing shareholder 2500 MW

SONATRACH IN THE WORLD – Power Generation

Spain

France

Italy

AlgeriaElectricty Project Export :

1200 MW

Beni-Saf …… Almeria

(in parallel with Medgazpipeline)

Electricty Project Export :

1200 MW

Beni-Saf …… Almeria

(in parallel with Medgazpipeline)

Electricty Project Export :

1200 MW

Beni-Saf …… Almeria

(in parallel with Galsipipeline)

Electricty Project Export :

1200 MW

Beni-Saf …… Almeria

(in parallel with Galsipipeline)