0. 2nd INDIA-AFRICA HYDROCARBONS CONFERENCE
Sonatrach The Algerian National Oil & Gas Company A Proven Experience in Hydrocarbon Business
2nd INDIA-AFRICA HYDROCARBONS CONFERENCE
New Delhi December 7-8 / 2009

1. 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
EUROPE
Algeria
USA
EUROPE
Algeria

2. THE HYDROCARBONS IN THE ALGERIAN ECNOMY
The Hydrocarbon Industry plays an important role in
the Algerian Economy
Agriculture
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
employees work for the oil and gas industry
Hydrocarbons
Services
Industry
Buildings & Construction
GDP : 127 G US $

3. SONATRACH : The Algerian National Company
Sonatrach was created in December 1963
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

4. SONATRACH : A Fully Integrated Company
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)
Core Activities
Upstream
Transportation by pipelines
Downstream
Marketing
International Activities
Upstream
Transportation by pipelines
Downstream
Trading of hydrocarbon products
Shipping
Other Services

5. 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

6. Algerian Mining Area
03%
Exploitation
Km²
Domaine Minier Libre
Km²
24 %
15 % Sonatrach
9% Sonatrach & Partners
35 %
Sonatrach
Activity Area
Km²
Exploration
Prospection
National Mining area
of Hydrocarbons
From 1986 to 2009, signing of 94 contracts in partnership 6

7. HYDROCARBON RESERVES 1971: 4.3 Billions TOE 2008: 4.2 Billions TOE
Crude Oil
34 %
Natural Gas
51 %
Condensate
10%
LPG
5 %
1971: 4.3 Billions TOE
2008: 4.2 Billions TOE

8. Fields in exploitation 13 Wells in exploitation 500 daily production
GAS POTENTIAL
Fields in exploitation 13
Wells in exploitation
500
daily production
Sm3
gas injection
40%

9. UPSTREAM GAS FACILITIES
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.

10. GAS RESERVES DEVELOPMENT MODEL (BCM)
1385
NARUREL DEPLETION
30%
3134
ENHANCED RECOVERY
70%

11. OIL RESERVES DEVELOPMENT (Million CM)
NARURAL DEPLETION
ENHANCED RECOVERY
653
18%
3008
82%

12. GAS BALANCE SALES 60 % LNG 40 % 40 % NG 60 % PRODUCTION EXPORTATION
DOMESTIC MARKET
30 %
Reinjection
40 % NG
60 %
EXPORTATION
70%

13. GAS FLARING REDUCTION
43 bcm
79%
21 bcm
21%
2 bcm 9%

14. Algeria’s Hydrocarbons Production : 1958-200914 14

15. NATURAL GAS PRODUCTION 1962-2008
La part de la production de gaz naturel en association a atteint 22% de la production totale de gaz naturel en 2008.
Billions m3 15

16. HYDROCARBON CHAIN : Main Achievements in 2008
Marketing
Downstream
Midstream
E&P
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 Km
5 122 Km by Sonatrach alone
3D: total km2
3 235 Km2 by Sonatrach alone
Total Prod.: Mtoe
Oil & Cond.: 79.0 Mtoe
Natural Gas: BCM
LPG: 9.9 Mtoe
30 pipelines of km
North trans Mtoe
N. Gas: BCM
South transp 78 Mtoe
N. Gas: 28 BCM
Pumping & compression stations:
Storage capacity:
3.4 millions cm
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: BCM
LNG: MCM
Domestic Market: 30.8 MToe 16

17. SONATRACH INVESTMENT PLAN OVER 2009-2013
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 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
Sonatrach investment plan
over :$63.5bn

18. SONATRACH AMBITION Strategy Focus
A STRONG COMMITMENT TO EXPAND INTERNATIONNALLY BOTH UPSTREAM AND DOWNSTREAM 1 2 3 4
Strategy
Focus
MAINTAINING SONATRACH POSITION ON
THE EUROPEAN MARKET
BUILDING A STRONG POSITION ON THE ATLANTIC BASIN
Today, as the environment of gas has changed, Sonatrach ambitions have also been renewed. Our commitments are to:
Expand internationally, both upstream and downstream.
Build a strong position on the Atlantic basin.
Move downstream in the gas value chain. And to
Maintain Sonatrach position on the European market.
The deployment of these new strategic operations are designed to better control certain risks strengthened by the competition while taking advantage of investment opportunities in markets with high potential and in new activities.
MOVING DOWNSTREAM IN THE GAS VALUE CHAIN 18

19. SONATRACH IN THE INTERNATIONAL

20. ALGERIA GAS EXPORTS : 85 Bcm in 2015

21. TRANSPORTATION CAPACITY
Capacity BCM
2015
2010
2004
1996
1983
Years

22. ENRICO MATTEI GAS PIPELINE 48” GEM 1&2
May 10th, 1983
Starting Date
476 x 109 SM3
Transported Volumes
November

23. PEDRO DURAN FAREL GAS PIPE LINE 48” GPDF
November 1st, 1996
Starting Date
116 x 109 SM3
Transported Volumes
November

24. GAS LIQUEFACTION CAPACITY

25. A COMPETITIVE POSITION

26. REGASIFICTION CAPACITY
Isle Of Grain
5 BCM/2005 5
M. Bretagne
1 BCM/2010 1
Reganosa
2001
Cove Point
2 BCM/2009 2 26

27. E & P SONATRACH PROJECTS IN AFRICA
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).
Libye
Egypte
offshore
Niger
Mali
Algérie
Tunisie
Mauritanie 27

28. GAS DEVELOPMENT IN PERU
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: MM bbl
PRODUCTION:
GAS: BCF/day
Liquids: bbl/day
SONATRACH PARTICIPATION:
UPSTREAM : %
TRANSPORTATION : %
CASHIRIARI
MALVINAS
REGIONAL MAP: BLOCKS 88 & 56
PAGORENI
MIPAYA
SAN MARTIN
NUEVO MUNDO

29. SONATRACH : from Regional to Global player
Spain:
Reganosa (10%):
Regasification
GEPSA(30%) : cogeneration
CGC (30%) : Trading
SGC (100%) : Trading
Propanchem (49%): Petrochemical
UK & Netherlands:
Oil, LPG & LNG regasification & Trading
USA :
Regasification
France
Trading of LNG
Italy
Trading of Gas
Portugal:
2% of EDP
25% in Power stations of EDP (one in Spain)
Tunisia :
01 Exploration block
Korea :
Crude oil storage capacities
Libya :
2 Exploration blocks in Ghadames basin
Mauritania:
3 exploration blocks
Peru :
Pipeline Project
Transport of Oil & Gas
from Camisea Field to
Lima & Callao
Development of
the blocks 88 and 56 in Camisea
Mali :
6 exploration blocks
Singapore :
Trading
Egypt :
(20%) Exploration
in 2 Offshore blocks
Nigeria :
Gas pipeline TSGP
Niger :
01Exploration block

30. Thank you for your attention30