Sonatrach The Algerian Oil & Gas Company NOT AN OFFICIAL UNCTAD RECORD DCG SPE Sonatrach The Algerian Oil & Gas Company may 2005

Outline Some figures about Algeria The role of the Hydrocarbon Industry Company‘s Profile Some figures in the year 2004 Primary, Marketed Production & Investment evolution over the medium term New gas grid from Algeria to Europe Recent developments

Algeria Second African country in size, with an area of 2.4 Million Sq.Km. Strategic geographic location, at the crossroads of African, Arabic, and Mediterranean worlds 30 Million inhabitants, mostly young and educated

The Weight of the Hydrocarbon Industry in the Algerian Economy The Hydrocarbon Industry plays an important role in the Algerian Economy The hydrocarbon industry accounts for around 36% of GDP Proceeds from hydrocarbon exports cover 98 % of hard currency resources of the country More than half (70%)of the state budget is funded by oil and gas tax revenues 150 000 employees work for the oil and gas industry

Sonatrach : The Algerian National Oil and Gas Company Sonatrach was created in december 1963 ( Piw ranking 2004 : 12th) The mission of Sonatrach is three fold: 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

Algeria’s Hydrocarbons Production : 1958-2009 Projected Gas & Oil Developments Sonatrach & Partners Mainly Gas Developments Sonatrach The oil production decrease was mainly due to the external shocks of the 70's & the mid 80's Birth of Sonatrach

The Algerian Gas Industry (Current and New Projects) LNG plants Skikda GL4Z GL1K GL1Z GL2Z Liquefaction Plants Capacity (Bcm/year) 1.5 8.0 10.5 Start up 1964 1972 1978 1981 GL1Z/GL2Z 1990 1978,1981 Arzew GL1K New LNG Plant Algiers 1972 GG1 GL4Z 1964 GZ0 GK1 GEM GZ1 1983 GPDF GZ2 1996 GZ3 2003 Hassi Rmel Gassi Touil 1961 1976 Quartz. (RN+GT) 13 Bcm Tankers Capacity (LNG m3) Lalla Nsoumer Berge Arzew Mustapha Ben Boulaid Larbi Ben M'hidi Bachir Chihani Didouche Mourad Abane Ramdane Hassi R'mel 145 000 138 000 125 260 129 700 129 500 126 473 126 190 40 850 961 973 GR1 2007 GR3 1988 Rhourde Nouss Hamra 1988 GR2 1995 Ohanet 5 Bcm 2000 In Salah 9 Bcm 2004 TFT Alrar 1999 2003 1965 Tinhert 3 Bcm 2007 In Aménas 6 Bcm Lahnet 7 Bcm 2005 2007 Total

Some figures about Sonatrach (2004) Production 222 Mtoe including: Oil & Condensate: 76 Mtoe Natural Gas : 144 Gm3 Transportation 15 844 km of operational pipelines (30 pipelines). Liquefaction of NG : 41 Mm3 LPG Separation* : 8.4 MT Refining : 21.5 MT Marketing : 159 Mtoe including: Exports : 133 Mtoe Domestic : 26 Mtoe * : Including LPG from liquefaction plants.

Total Hydrocarbon production, 1999-2009 AAGR*= 3.0% 106 TOE (*): Average Annual Growth Ratio. Source: Sonatrach

Exports, 1999-2009 Volumes Values 106 TOE 109 US$ 735 106 TOE 93 G$ @ 19 $/bbl Values 109 US$

Domestic Consumption, 1999-2009 150 106 TOE Volumes 106 TOE 514 GDA Values 109 DA

Total Investments, 1999-2009 Projection over the medium term =24,5 G $US G $US 6,5 6,3 5,1 4,4 3,9 3,6 3,7 3,4 2,6 2,4 2,3

Total Investments – Achievements 2002 - 2004 Unit:106 US$

Total Investments over the medium term ( 24.5 109 US$) Unit:109 US$ 5.1 6.3 6.5 4.4 2.3

The main new projects over the medium term Unité de traitement de brut Hassi Messaoud Sud Installations Revamping of Hassi Messaoud Rhourde-Nouss (CTH & R.chouff) Development project Ohanet Electrification / Electric Station Extension of Alrar Ligne 220 kv Rhourd Nouss-In Aménas GPL unit of Hassi Messaoud Compression unit of Hassi Messaoud Gassi Touil field Development project Tinhert field Development project Sud Est Illizi field Development project

The main new projects over the medium term Condonsat Pipeline NK1 Haoud el Hamra-Skikda Gas Pipeline 1st phase Rhourde Nouss-Hassi R’mel Gas Pipeline (Medgaz/GZ) Hassi R’mel – BeniSaf New train LNG of Skikda Topping condensat of Skikda New train LNG of Gassi Touil project Unité d ’extraction d’hélium à Arzew Train de séparation de GPL à Arzew

Development of New Routes MEDGAZ Submarine Line Algeria-Italy Spain ITALIE Arzew Liquefaction Plant 4-5 MT/y LNG TANKERS TMPC Hassi R’Mel Sonatrach will develop in partnership new direct routes to secure access to European markets at competitive costs.

New Gasline Algeria-Spain "MEDGAS" Almeria Beni Saf Hassi R’mel PIPE PARAMETERS Flow rate : 8 Billions Cm3/y Hassi R’mel to Beni Saf (onshore pipeline/Algeria): Diameter : 48’’ Length : 547km From Beni Saf to Alméria (offshore pipeline) : Diameter : 24’’ Wall thickness : 31.8mm Length :200km Watert depth : 2200 meters Inlet pressure : 190 bars Comments The feasibility study is achieved and showed the obvious profitability of the project. Currently, the realization company was set up early in 2003. The constructing works will start at the end of 2003 or early in 2004.

New Gasline Algeria-Italy "GALSI" PIPE PARAMETERS CNDG C.d.Pescaia Olbia El Kala Flow rate : 7,6 Billions Cm3/y Hassi R’mel to El Kala (onshore pipeline/Algeria): Diameter : 42’’ Length : 640km ElKala to Cagliari (offshore pipeline) : Diameter : 24’’ Length : 310km Watert depth : 2150 meters Cagliari to Olbia (Sardaigna) : Diameter : 42’’ Length : 300km Olbia to C.d.Pescaia (Offshore pipeline) : Diameter : 22’’ Length : 220km Watert depth : 900 meters Comments The feasibility study is in progress with different operators: Sonatrach, Enel Power, Wintershall, Edison Gas & EOS Energia

Sonatrach’s International Focus Développement champ de Camisea Pérou : Amont & pipeline Espagne : Unité de Regazéification & Co-gen. Projets Amont E&P Irak Yemen Lybie Mali Soudan Afrique du Sud Royaume Uni & Hollande: Trading de brut, GPL & GNL Nigéria : Etude du Projet de gazoduc Nigal Abuja-Beni Saf USA : Portefeuille d’actions - 5% in Anadarko - 2% in Duke Energy - Petrochem. Tarragona - Gestion du pricing des options Sahara Blend Sonacep (SH/Cepsa)