SonatrachThe Algerian National Oil & Gas Company Investment Plan 2012-2016 bekkouche@iap. Corporate University Sonatrach Algeria Bekkouche Djamel is currently the head of the Algerian Petroleum Institute. Mr Bekkouche was particularly in charge of the Exploration Division at Sonatrach Upstream Activity from 2008 to 2011. He has many publications and communications in international conferences and forums.Dr. Bekkouche graduated from the Algerian Petroleum Institute (IAP) in 1978 and occupied many functions and positions at Sonatrach since 1980 where he started as Geologist. Djamel BEKKOUCHE Managing Director Algerian Petroleum Institute.dz Phone +213 24 81 90 56 . Contact: Email: djamel. France and got a PhD in Sedimentology in 1992. He also post-graduated from Grenoble University .Fax: +213 24 81 86 30 Adress: Avenue du 1er novembre Boumerdes 35000 Algerie . Corporate University of Sonatrach Algeria. Outline The Algerian Hydrocarbon Industry Sonatrach’s Profile & Vision Sonatrach Development Plan and Strategy Concluding remarks . • 2nd largest LPG producer : 9 Mt/y. The mission of Sonatrach : to meet Algeria’s present and future hydrocarbons needs to maximize the long-term value of Algeria’s hydrocarbons resources to contribute to the national development. mainly by providing the required hard currencies . • 3rd largest gas exporter : 60 Gcm/y.SONATRACH TODAY First Company in Africa In the World: • 1st largest condensate exporter : 15 Mt/y. • 2nd largest LNG producer : 45 Gcm/y. The Hydrocarbon Industry in the Algerian Economy The Hydrocarbon Industry plays an important role in the Algerian Economy Imports taxes and duties Government services 6% 8% Hydrocarbons The hydrocarbon industry accounts for around 44% of GDP Proceeds from hydrocarbon exports cover 98 % of hard currency resources of the country 76% of the state budget is funded by oil and gas revenues 150 000 employees work for the oil and gas industry Nongovernment services 21% 44% 9% Construction and public works 5% Industry 8% Agriculture GDP : 135 G US $ . ENGCB. …) Refining ( NAFTEC) Petrochemical ( ENIP) National distribution ( NAFTAL) Shipping ( HYPROC) Electricity and desalination of sea water (AEC) Renewable energies ( NEAL) Training ( IAP-CU) Downstream Transport Upstream International • • • Upstream Transportation Downstream • • • Marketing Shipping Others Marketing 5 .Sonatrach : A Fully Integrated Company Core Activities Subsidiaries • • • • • • • • • • • Drilling (ENTP AND ENAFOR) Well Services ( ENSP) Geophysics ( ENAGEO) Construction (ENGTP. EOR.An Ambitious Investment Plan for 2012-2016 Sonatrach investment plan over 2012-2016 :$68. LNG & Natural Gas) 82% Upstream Maximize the value of Sonatrach products (Petrochemical projects and International trading) Consolidate our assets internationally 6 .2bn Support Transportation Downstream 9% 8% 1% Expansion of Algeria’s hydrocarbon reserves base through: Enhancement of exploration program (including the offshore) Unconventional gas appraisal (shale and tight) Increase and insure sustainability of production levels (development of new oil and gas fields. etc…) Expansion of the oil and gas export capacity (Refinery. Adaptation. and 50% Increase in the Topping capacity of Arzew refinery. REFINING 7 . Commissioning : End 2012 Revamping.Main Downstream Projects Strengthening the Downstream … Under-Construction Projects Revamping. Commissioning : March 2014 Projects in lunching Phase New refinery of Hassi Messaoud (RHM3) and the Revamping of RHM2 (FEED) Fuel Conversion in RA1K (Skikda) Projects under Study New crude oil refinery in centre region. New refinery to process the heavy crude oil for bitumen production. Adaptation. and 35% Increase in the Topping capacity of Algiers refinery. and 10% Increase in the capacity of toppings of Skikda refinery. Commissioning : February 2012 Revamping. Adaptation. Main Downstream Projects … & Developing the Petrochemical sectors Under-Construction Projects Pier of the Ammonia/Urea Plant . 2015 New Urea-Formol UFC 85 Pre-condensates Unit for the CP1Z Plant Installation of a new mixed production Unit of Urea Formol 85 pre-condensates. Commissioning : End 2014 Extension of the CP1Z Plant Methanol Unit Revamping and increase in capacity of the Methanol unit. 2014 Projects under Study Project dehydrogenation of propane and polypropylene production in Arzew 8 .Mers El Hadjadj Building of a pier intended for the Ammonia/Urea Plant of Mers El Hadjadj. Commissioning : Jan. Commissioning : Jan. Commissioning : End 2011 PETROCHEMICALS Revamping of the CP1K Plant Upgrading of the production units and implementation of a DCS. 5 MT/y GALSI 08 BCM Skikda Arzew GEM 33.7 MT/y GPDF 11.7 MT of LNG Commissioning : June 2013 Tankers capacity of 1 million m3 LNG JHK GL3Z LNG unit of 4.7 BCM PIPELINE PROJECTS GALSI Transportation Capacity : 8 BCM TSGP Transportation Capacity : 20 to 30 BCM Hassi R’Mel TSGP 20-30 bcm 9 .5 BCM MEDGAZ 08 BCM GL2K LNG Unit of 4.5 MT Commissioning : August 2012 New LNG train– Arzew Annual production capacity : 4.Insure a sustainable position in the Natural Gas Market LNG PROJECTS New LNG train – Skikda Annual Production capacity : 4. Sonatrach : from Regional to Global player USA : Regasification Spain: Reganosa (10%): Regasification GEPSA(30%) : cogeneration CGC (30%) : Trading SGC (100%) : Trading Propanchem (49%): Petrochemical UK & Netherlands: Oil. LPG & LNG regasification & Trading France Trading of LNG Italy Trading of Gas Korea : Crude oil storage capacities Singapore : Trading Portugal: 2% of EDP 25% in Power stations of EDP (one in Spain) Mauritania: 6 exploration blocks Tunisia : 01 Exploration block Libya : 2 Exploration blocks in Ghadames basin Mali : 2 exploration blocks Niger : 01Exploration block Peru : Pipeline Project Transport of Oil & Gas from Camisea Field to Lima & Callao Development of the blocks 88 and 56 in Camisea Nigeria : Gas pipeline TSGP 10 . Leading experience in the gas chain. from upstream to downstream 4. 6. 3.Concluding remarks (1) Main Factors of Success for our company and the investors in Algeria. 1. mainly in gas liquefaction 5. Important base of reserves Sedimentary basins of high potential and under explored More than 40 years of experience in integrated oil and gas activities. 2. Proximity to important markets Successful record of partnership . Partnership with foreign companies has given substantial results in the upstream and our ambition is to reach similar results in downstream activities. Tight ands shale gas is very high: so welcome to the Canadian company to explore and develop shale gas in Algeria. as SNC Lavalin in the construction and Talisman in the Upstream (field developpement) with a successful business and we hope that others company will visit our country to see the reality and to meet business private and state companies. energy services. Construction. Many projects in the downstream sectors are planned for the next five years in refining and petrochemicals (more than 10 billions $US will be invested) The Algerian mining domain is still under explored and the potential of the unconventional resources.Concluding remarks (2) Sonatrach considers partnering as a key liver for implementing his strategy. . Many Canadian companies are present in Algeria. Petrochemicals…) and in the renewable and new energy. Refinery. More than fifty Billions US$ will be instead in the the investment in the upsteram Several opportunities available in the hole hydrocarbon value chain (E&P. The Canadian Oil and Gas company are welcome to invest in Algeria were all the conditions and rules for transparency are set up to allow to the foreign company to be present in force. THANK YOU Contact Ministère de l’Energie et des Mines Tour A. Val d’Hydra Alger.sonatrach-dz. Algérie Tel + 213 21 48 85 26 FAX + 213 21 48 85 57 Email: infomem-algeria.org Contact Direction Générale Sonatrach Chemin Djenane El Malik Hydra Alger Algérie Tel + 213 21 54 70 00 FAX + 213 21 54 77 00 Email: [email protected] Web Site: www.com .dz Web Site: www.mem-algeria.