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Opportunities in the Hydrocarbon Sector

• Surface of the mining

domain : 1 553 488 km2

• Offshore: 93 500 km2 (6%)

• Onshore: 1 459 988 km2

(94%)

• Activity being conducted on

slightly over 50% of the total

acreage.

• The activity is concentrated

in the Eastern region

covering the basins of

Berkine, Illizi, Oued Mya and

Amguid−Messaoud

ALGERIA: Mining Domain

SONATRACH: An Integrated Company over the entire value chain

MarketingDownstreamPipeline

TransportationExploration &

Production

• Drilling (ENTP & ENAFOR)• Well Services (ENSP)• Geophysics (ENAGEO)• Construction (ENGTP, ENGCB, …)• Distribution (NAFTAL)• Shipping (HYPROC)• Electricity and Seawater Desalination (AEC)• Fertilizers (ASMIDAL, AOA, Fertial, OCI,.)

• Upstream• Transportation• Downstream• Marketing• Shipping

InternationalSubsidiaries

Liquefaction Capacity 60 MCM

LNG Production 30 MCM

LPG Processing 8 Mt

Refining Capacity 25 Mt Oil + 5 Mt Condensate

Exports 100 MTOE

Liquid: 56 MTOENG: 28 BCMLNG: 29 MCM

Domestic Market 45 MTOE

Out of which Natural Gas: 30 BCM

32 pipelines of19 623 km

North trans 147 MTOE N. Gas: 82 BCM

Pumping & compression stations 81

Storage capacity4.1 MCM (liquids)

Discoveries (28)27 by Sonatrach01 in Partnership

Exploration wells (113)103 by Sonatrach 10 in Partnership

Seismic acquisition2D : total 6 700 Km 6 300 Km by Sonatrach

3D: total 13 700 km2

11 300 Km2 by Sonatrach

Primary ProductionTotal: 196 MTOEOil & Cond.: 62 MTOENatural Gas: 132 BCMLPG: 8 MTOE

MarketingDownstreamMidstreamE&P

Sonatrach Corporate Profile : 2014 key figures

Other Key Figures

Revenue~ 60 billion USD

Employees47 500

64 4 3

5 5

9 8 9 9

27

19

24

2927

97 6 5

12

6

17

20

16 16

29

20

31 32

28

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 nov.-14

Sonatrach Global performance (including partners)

Evolution of discoveries from 2000 onward

Evolution of Exploration Activity

2005 2006 2007 2008 2009 2010 2011 2012 20130

50

100

150

200

250

300

350

400

450

0

5

10

15

20

25

30

35

Volume (P1+P2) MTEP Number of discoveries

Partnership : Decisive Leverage in the Development of the Algerian Hydrocarbons Sector

Sonatrach’s Medium Term Development PlanOverall Investment 2015-2019 : $90 GUS

The main areas of activities

strengthening the reserve base through an enhanced

exploration program..

Field development aimed at increasing the level of production

to over 225 million TOE in 2019.

Expansion of the pipeline transportation capacity in order to

increase the transport capacity by 59 million TOE / year

construction of new oil refineries and a fuel cracking unit at

Skikda.

Revamping of the Algiers and Hassi Messaoud Refineries.

Development of the petrochemical industry.

supply of the domestic market with LPG and fuels

71%

20%8%

1%

Upstream

Downstream

Midstream

Support

Areas of exploration:

1. Mature Basins (Illizi, Berkine, Oued Mya, and

Messaoud and Hassi R’Mel perimeter)

2. underexplored new zones in order to demonstrate

the potential of less mature basins or "frontiers"

such as Bechar, Tindouf, Mouydir Chenachene,

Tamesna ,Tafassasset …

3. Offshore & North Region

4. Appraisal of unconventional resources / Shale

GasChenachène

Tafassasset

Illizi

BerkineOued Mya

Hasssi R’Mel

Hasssi Messaoud

1

Tindouf2

Bechar

Mouydir

Tamesn

a

Offshore

Domaine Tellien

Atlas et hauts Plateaux

3

Seismic acquisition : 2D 10 000 km/ year 3D 26 000 Km2/ year

Drilling: > 125 Wells / year

Sonatrach’s Medium Term Development PlanExploration program

Ongoing program: Assessment of Unconventional Resources

Studies

performed with

consultants

Cooperation

agreements with

petroleum

companies

Future areas for

study

According to EIA, Algeria is credited with 707 Tcf of Technically Recoverable Reserves of shale gas

D&M 2010• 3409 Tcf Mean Estimate

• 644 Tcf TRR (Silurian only)

Sonatrach’s Medium Term Development PlanIncrease the pace of activities in Research & Exploration

The Main Projects to Develop: aim to achieve a production level of 225 M TOE in 2019

In Mature Regions … and less Mature … eg. Hassi Messaoud Region … eg. South West Region

The development of oil fields in the vicinity of Hassi

Messaoud and Bir Berkine, Bir El M’Sena, CAFC oil, Bir

Sbaa, El Mzaid and Takouazet.

The development of the gas fields of Tinhert, satellites

MLSE, periphery of Gassi Touil, fields of South In Salah,

Bourarhat North, Erg Issaouane, Tisselit North and Isarene.

The development of gas projects in the South West

region : Akabli and Tidikelt, Timimoun, Touat ,

Reggane North , Ahnet , Hassi Mouina and Hassi

Ba Hamou

Sonatrach’s Medium Term Development PlanDevelopment of New Fields

Medium Term Development Plan : LNG & LPG

GL2K

2013 LNG

10 Million m3

GL1Z Arzew

1977 LNG

17,56 Million m3

G

G

GL2Z Arzew

1981 LNG

17,82 Million m3

GG

GL1K Skikda

1972 LNG

4,76 Million m3

G

G

G

G

G

BiskraTiaret

Ghardaïa

GL3Z

2013 LNG

10,5 Million m3

G

G LNG Unit

S LPG separation

GP1Z Arzew

1983 LPG

9 Million T

S

GP2Z Arzew

1973 LPG

1,4 Million T

S

S

S

Existing Liquefaction Capacities : 40 Million m3 LNG and additional : +20 Million m3 LNG Existing LPG Processing Capacities : 10,4 Million Tons

Medium Term Development PlanRefining

RA1Z Arzew

1973 2013

2 500 3 750

O

ORA1G Alger

1964 2015

2 700 3 645

O O

RA1K Skikda

1980 2013

15 000 16 500

O

O RA2K Skikda

2009

5 000

N

N

FO Craker Skikda

2017

4 000

F

F

Raf. Biskra

2018

5 000

OO

O

BiskraTiaret

Ghardaïa

Raf. H. MD

2018

3 000

O

O

Raf. Tiaret

2017

5 000

O

* including 5 MT NGL topping

O Oil topping

N NGL topping

F Fuel Oil Craker

Raff. Adrar

2007

600

O

O

RHM2

1962

1 070

O

O

The Revamping of the Algiers refinery … and The Construction of 3 New UnitsCurrent Refining Capacity : 25 MTA (at the of end 2015) Additional Capacity: 13 MTA

Target : 40 MTPA

Medium Term Development PlanPetrochimicals

CP1Z Arzew

1976/1978

124

AOA1 Arzew

2013

Ammonia 1 300

Urea 2 300

CP2K Skikda

2005

130

BiskraTiaret

Ghardaïa

FERTIAL3 Annaba

2005

Ammonia 600

NPK 600

NA/CAN 300

UAN 300

SORFERT2 Arzew

2013

Ammonia 1 500

Urea 1 100

FERTIAL3 Arzew

2005

Ammonia 330

NA/CAN 450

1: JV w SGBH2 : JV w OCI 3: JV ASMIDAL/FERTIBERIA

Construction of new units

• New Petrochemical plantCP1K

Bis at Skikda.

• Dehydrogenation of Propane

and production of Polypropylene

(PDH/PP) in Arzew.

• Methanol & Derivatives plant in

Arzew.

Existing Asset Base

Upstream Business Opportunities : Engineering

SKID (Package) Facilities for Gas Production :

Turbo-compression (Boosting) Turbo-Expander Dehydration Decarbonization Desulphurization Demercurization Multiphase Flowmeter Treatment of produced water

Facilities for oil production :

Multiphase pumps Field processing Modules : separation, desalting, stabilization Treatment of oily water

Equipment Manufacturing & Services in Algeria :

- Rotating machine parts (Different types of mechanical seals, Impeller and wheels for different types of pumps, Specific coatings (silk for bearing, shaft seats, etc…))

- Turbo-machinery (Manufacture of turbines and compressors, Manufacture of spare parts, Overhaul of turbo-machinery Workshops, Control & Command System)

Research : - Development and modeling of rocks and clays rheology

- Provision of laboratories equipment, similar to SCAL laboratories (Conventional Core Analysis) developed by BP in 2007, in HMD;

- Cooperation with leading universities and / or similar laboratories in research projects , related particularly to the assessment and the exploitation of unconventional reservoirs , reservoirs modeling, optimizing hydraulic fracturing and the use of new drilling fluids

Upstream Business Opportunities : Research

Training :

- Collaboration for expertise training related to studies of air pollution, hazards as well as environmental aspects pertaining to non-conventional resources exploitation

- Specialized and / or graduated training in partnership with leading universities and institutions

- Staff training in the field of command and control systems

- Cooperation in the field of training and technology transfer, in particular through developing cutting-edge technologies such as : Seismic imaging , oil recovery techniques, horizontal drilling , hydraulic fracturing

Upstream Business Opportunities : Training

Downstream Business Opportunities

Joint cooperation in the field of engineering

Participation to the new refinery projects construction

Participation to the reliability projects of the GL1Z & GL2Z units

Cooperation in the field of Research & Development in the downstream, including natural gas, LNG, LPG and refinery

Petrochemical Business Opportunities

Realization of feasibility studies ( market , technology or process selection, )

Realization of Front-End Engineering Design studies

Engineering, Procurement and Construction (EPC) .

Project Management Contractor – PMC

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