>1j*pU>ui ; or ms Doc^u:/; s i wiibiGi'l GmU.S RiVmJi.ib) Sonatrach Main Activities soonfroch o r petroleum products (NAFTAL)
Hydrocarbons shipping (SNTM - HYPROC) Exploration International oil trading Production International gas trading (/) Transportation by pipelines Liquefaction of Natural Gas and LPG Separation Affiliated activities (51%) Marketing 3 Drilling (ENTP andENAFOR) D & 50 O Wells Services (ENSP) n? Geophysics (ENAGEO) o Construction (ENGTP)
riirftftrf i r>f SONATRACH DISCLAIMER
Portions of this document may be illegible in electronic image products. Images are produced from the best available original document. The 10th European Gas Conference Oslo - Norway 11-12 May 1999
Main issues on Sonatrach’s gas agenda in the coming years
By M. MAZARI - BOUFARES SONATRACH Main issues on Sonatrach’s gas agenda in the coming years
EUROPEAN GAS MARKET
SONATRACH DEVELOPMENT PLAN ,>ijj\aiiym Some Key Figures About Sonatrach (1998)
SCMinfpcKJh
Exploration : Mining territory: 1J l.Km w Seismic Drilling ■ : 140 800 Wells A . 50 •'x „ ...... PjpMichon: 4 Total Hydrocarbons Reserves: Fields 38.5 Billion bbl Oil Equivalent 183 millions t o e produced (< 68 % Of Natural Gas) equlvt round 4 Mboe/day. Total gas exports : 52.7 Bern, of which : ration of LPG : 5.2 M.T 47% LNG 53% Natural Gas Transportation : 12900 Km on^RMi in Operation Human Resources: (25 pipelines ofwIHll gaslines) 35100 permanent employees
|f| .....'--urn...... ------mm-f'wC "r...... mtm------mrmTiTmmdbmidtmriri -r-'vrrrr...... —rrrrf SONATRACH <**•»toUfM* Algerian Gas Production (1996 - 2002)
Bern
HASSI R'MEL
0 GASSITOUIJL RHOURDE ALRAR IN SALAH HAMRA^O • e TIN FOVYE • In 1996, Hassi R Mel field contribution • 0 IN AMENAS equivalent to 75% of total production • By 2002, this will be reduced to 40%
SONATRACH Sonatrach Natural Gas Strategy
Renew and develop natural gas reserves.
Secure the long term supply of the country
Implement and develop international sales through a long term marketing policy.
SONATRACH Algeria, one of the main gas supplierto the european market
European Imports Shares European Consumption Shares
Others CIS Norway 5% 19% 21%
Netherlands Algeria Norway 20 % 12 % 22 %
*=> In 1997, algerian gas represented 22% of the european gas imports and 13% of its consumption. NATURAL GAS DEMAND IN EUROPEAN UNION
1996 2005 2010
Power Generation is the driving force in the growth of natural gas demand EUROPEAN UNION : SUPPLY / DEMAND BALANCE
Demand Imports Domestic production GAP
2005 2010
o The GAP will reach 16 Bern in 2005 and 37 Bern in 2010
I
Important Hydrocarbons Reserves seootrocti
TOTAL HYDROCARBONS RESERVES * Total hydrocarbons in place (proven+probable): 112 Billions BOE • Total hydrocarbons reserves : 38.5 Billions BOE
■ Natural Gas BCudeOil ■ Condensate QL.P.G
MAIN GAS FIELDS
46 research and production contracts, since 1986. ■ Has si R'Mel ■ Rliourd Nous s ■ S tali D In Sal ah ■ 111 ■ In Anienas 19 foreign companies ■ Others operating in Algeria
SONATRACH somntreelv Gross Nearly Exports REINJECTED SALES 125
Production
46% Bern
account
of
the
for
total
75% Algerian
gas
of Marketed
production marketed SONATRACH
volumes
Gas is
reinjected Production
Balance
-
1998 52.7 Exports
Bern Natural Gas Exports In 1998 *oo Europe is the main destination Unit: BCM of Algerian gas exports Trade by pipelines Trade by LNG tankers Natural gas exports increased from 25 BCM in 1987 to 53 BCM in 1998 SONATRACH SONATRACH OBJECTIVES Diversification in domestic and international downstream business (distribution, power generation,...). Target the utilisation sectors, such as power generation, that enable to disconnect the gas price from the oil price. ' - y Ijnn. Gas valorisation in domestic and international non energetic sectors (petrochemicals, fertilisers,..). SONATRACH Sonatrach Main Missions sofxUracJh Meet Algeria’s present and future hydrocarbons needs Maximise the long-term value of Algeria’s hydrocarbons resources Contribute to the national development SONATRACH Sonatrach Organization sofintroeii SONATRACH Sonatrach Organization SwtntreHdh General Assembly Board President and Chief Executive Officer General Secretariat Executive Committee Specialized Committees Audit and Negotiation and Finance Communication Systems Legal Affairs Liquefaction Liquid Strategy HydrocarbonsTransportation and Gas internal Affiliates and Hydrocarbons Planning Production by Pipeline Hydrocarbons Marketing Management Participations Marketing and economics transformation SONATRACH