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

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

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 150 000 employees work for the oil and gas industry Hydrocarbons Services Industry Buildings & Construction GDP : 127 G US $

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

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

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

Algerian Mining Area 03% Exploitation 643 110.63 Km² Domaine Minier Libre 910 377.37 Km² 24 % 15 % Sonatrach 9% Sonatrach & Partners 35 % Sonatrach Activity Area 1 553 488 Km² Exploration Prospection National Mining area of Hydrocarbons From 1986 to 2009, signing of 94 contracts in partnership 6

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

Fields in exploitation 13 Wells in exploitation 500 daily production GAS POTENTIAL Fields in exploitation 13 Wells in exploitation 500 daily production 500 . 106 Sm3 gas injection 40%

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.

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

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

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

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

Algeria’s Hydrocarbons Production : 1958-2009 14 14

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

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 13 526 Km 5 122 Km by Sonatrach alone 3D: total 6 742 km2 3 235 Km2 by Sonatrach alone Total Prod.: 233.3 Mtoe Oil & Cond.: 79.0 Mtoe Natural Gas: 152.8 BCM LPG: 9.9 Mtoe 30 pipelines of 16 200 km North trans 166.7 Mtoe N. Gas: 85.2 BCM South transp 78 Mtoe N. Gas: 28 BCM Pumping & compression stations: 78 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: 35.5 BCM LNG: 39.6 MCM Domestic Market: 30.8 MToe 16

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 120 000 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 2009-2013 :$63.5bn

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

SONATRACH IN THE INTERNATIONAL

ALGERIA GAS EXPORTS : 85 Bcm in 2015

TRANSPORTATION CAPACITY Capacity BCM 2015 2010 2004 1996 1983 Years

ENRICO MATTEI GAS PIPELINE 48” GEM 1&2 May 10th, 1983 Starting Date 476 x 109 SM3 Transported Volumes November - 2009

PEDRO DURAN FAREL GAS PIPE LINE 48” GPDF November 1st, 1996 Starting Date 116 x 109 SM3 Transported Volumes November - 2009

GAS LIQUEFACTION CAPACITY

A COMPETITIVE POSITION

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

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

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: 238.8 MM bbl PRODUCTION: GAS: 1 BCF/day Liquids: 100 000 bbl/day SONATRACH PARTICIPATION: UPSTREAM : 10 % TRANSPORTATION : 21.18 % CASHIRIARI MALVINAS REGIONAL MAP: BLOCKS 88 & 56 PAGORENI MIPAYA SAN MARTIN NUEVO MUNDO

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

Thank you for your attention 30