Continental Focus, International Reach

Algerian Discoveries Move Toward Development

Wednesday, February 15, 2012

In an effort to extend its production activities in North Africa, German firm RWE Dea AG has now obtained a permit to develop a total of six natural gas fields in Algeria. Algeria’s ALNAFT issued the permit to develop the Reggane, Azrafil South-East, Kahlouche, Kahlouche South, Tiouliline, and Sali gas fields in the Algerian desert.

The project includes the construction of a gas treatment plant, a gas accumulation system, a pipeline for export and infrastructure (runway, electrical systems).

“We are pleased that this project will enable us to further strengthen our long-term commitment in Algeria and North Africa“, says Christoph Schlichter, senior VP production North Africa for the company.

“We are now faced with the task to prepare production from the six fields together with our partners. We expect that we can start commercial gas production during H1 2016,” reports Schlichter.

The total investment in the development project is expected to hit about $3 billion. The Field Development Plan foresees a constant production rate of 8 Mmcf/d over a production period of 12 years.According to preliminary estimates, a total of 104 wells distributed throughout the six areas will be developed.

“Especially regarding the efforts of the EU to achieve greater diversification in the field of

energy supply, Algeria is increasingly playing a major role as a gas exporter and thus as a trading partner for Europe,“ explains Ralf to Baben, COO at RWE Dea AG. “In the medium term, our current project in Algeria will contribute to this development,” continued Baben.

RWE Dea AG, which holds 19.5% stake, is part of a consortium made up of Sonatrach (40%), Repsol (29.25%), and Edison (11.25%).