Transcript Sonatrach-presentation - Canada

Sonatrach
The Algerian National Oil & Gas Company
Investment Plan 2012-2016
Dr. Djamel BEKKOUCHE
Managing Director
Algerian Petroleum Institute,
Corporate University Sonatrach Algeria
Bekkouche Djamel is currently the head of the Algerian Petroleum Institute, Corporate University of
Sonatrach Algeria.
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. Mr Bekkouche was
particularly in charge of the Exploration Division at Sonatrach Upstream Activity from 2008 to 2011.
He also post-graduated from Grenoble University , France and got a PhD in Sedimentology in 1992.
He has many publications and communications in international conferences and forums.
Contact: Email: [email protected]
Phone +213 24 81 90 56 - Fax: +213 24 81 86 30
Adress: Avenue du 1er novembre Boumerdes 35000 Algerie
Outline
 The Algerian Hydrocarbon Industry
 Sonatrach’s Profile & Vision
 Sonatrach Development Plan and Strategy
 Concluding remarks
SONATRACH TODAY
First Company in Africa
In the World:
• 1st largest condensate exporter : 15 Mt/y;
• 2nd largest LNG producer : 45 Gcm/y;
• 2nd largest LPG producer : 9 Mt/y;
• 3rd largest gas exporter : 60 Gcm/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
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%

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
Hydrocarbons
44%
Nongovernment services 21%
9%
Construction and public works
5%
Industry
8%
Agriculture
GDP : 135 G US $
Sonatrach : A Fully Integrated Company
Subsidiaries
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Marketing
Downstream
Transport
Upstream
Core
Activities
International
Drilling (ENTP AND ENAFOR)
Well Services ( ENSP)
Geophysics ( ENAGEO)
Construction (ENGTP, ENGCB, …)
Refining ( NAFTEC)
Petrochemical ( ENIP)
National distribution ( NAFTAL)
Shipping ( HYPROC)
Electricity and desalination of sea water (AEC)
Renewable energies ( NEAL)
Training ( IAP-CU)
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Upstream
Transportation
Downstream
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Marketing
Shipping
Others
5
An Ambitious Investment Plan for 2012-2016
 Expansion of Algeria’s hydrocarbon reserves
base through:
Sonatrach investment plan
over 2012-2016 :$68.2bn
 Enhancement of exploration program
(including the offshore)
 Unconventional gas appraisal (shale and
tight)
Support
Transportation
Downstream
8%
1%
 Increase and insure sustainability of
production levels (development of new oil and
gas fields, EOR, etc…)
9%
 Expansion of the oil and gas export capacity
(Refinery, LNG & Natural Gas)
82%
Upstream
 Maximize the value of Sonatrach products
(Petrochemical projects and International
trading)
 Consolidate our assets internationally
6
Main Downstream Projects
Strengthening the Downstream …
Under-Construction Projects
Revamping, Adaptation, and 10% Increase in the capacity of toppings of Skikda refinery.
Commissioning : End 2012
REFINING
Revamping, Adaptation, and 50% Increase in the Topping capacity of Arzew refinery. Commissioning
: February 2012
Revamping, Adaptation, and 35% Increase in the Topping capacity of Algiers refinery.
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.
7
Main Downstream Projects
… & Developing the Petrochemical sectors
Under-Construction Projects
PETROCHEMICALS
Pier of the Ammonia/Urea Plant - Mers El Hadjadj
Building of a pier intended for the Ammonia/Urea Plant of Mers El Hadjadj.
Commissioning : End 2011
Revamping of the CP1K Plant
Upgrading of the production units and implementation of a DCS.
Commissioning : End 2014
Extension of the CP1Z Plant Methanol Unit
Revamping and increase in capacity of the Methanol unit.
Commissioning : Jan. 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 : Jan. 2014
Projects under Study
Project dehydrogenation of propane and polypropylene production in Arzew
8
LNG PROJECTS
Insure a sustainable position in the Natural Gas Market
New LNG train – Skikda
Annual Production capacity :
4.5 MT
Commissioning : August 2012
New LNG train– Arzew
Annual production capacity :
4.7 MT of LNG
Commissioning : June 2013
Tankers capacity
of 1 million m3
LNG
JHK
GL3Z
LNG
unit of
4,7 MT/y
GPDF
11,5 BCM
GL2K
LNG Unit
of 4.5
MT/y
MEDGAZ
08 BCM
Skikda
GALSI
08 BCM
Arzew
PIPELINE
PROJECTS
GEM
33,7 BCM
GALSI
Transportation Capacity : 8 BCM
Hassi R’Mel
TSGP
20-30 bcm
TSGP
Transportation Capacity :
20 to 30 BCM
9
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
Portugal:
2% of EDP
25% in Power stations of
EDP (one in Spain)
Peru :
Pipeline Project
Transport of Oil & Gas
from Camisea Field to
Lima & Callao
Development of
the blocks 88 and 56 in
Camisea
Mauritania:
6 exploration
blocks
Italy
Trading of Gas
Tunisia :
01 Exploration block
Libya :
2 Exploration blocks in
Ghadames basin
Mali :
2 exploration
blocks
Nigeria :
Gas pipeline
TSGP
Korea :
Crude oil storage
capacities
Singapore :
Trading
Niger :
01Exploration
block
10
Concluding remarks (1)
Main Factors of Success for our company and the investors in Algeria,
1.
Important base of reserves
2.
Sedimentary basins of high potential and under explored
3.
More than 40 years of experience in integrated oil and
gas activities, from upstream to downstream
4.
Leading experience in the gas chain, mainly in gas
liquefaction
5.
Proximity to important markets
6.
Successful record of partnership
Concluding remarks (2)

Sonatrach considers partnering as a key liver for implementing his strategy,

Partnership with foreign companies has given substantial results in the upstream and our ambition is to
reach similar results in downstream activities,

Many projects in the downstream sectors are planned for the next five years in refining and
petrochemicals (more than 10 billions $US will be invested)

The Algerian mining domain is still under explored and the potential of the unconventional resources,
Tight ands shale gas is very high: so welcome to the Canadian company to explore and develop shale
gas in Algeria. More than fifty Billions US$ will be instead in the the investment in the upsteram

Several opportunities available in the hole hydrocarbon value chain (E&P, energy services, Construction,
Refinery, Petrochemicals…) and in the renewable and new energy.

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.

Many Canadian companies are present 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.
THANK YOU
Contact
Ministère de l’Energie et des Mines
Tour A, Val d’Hydra Alger, Algérie
Tel + 213 21 48 85 26
FAX + 213 21 48 85 57
Email: infomem-algeria.org
Web Site: www.mem-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.sonatrach-dz.com