Continental Focus, International Reach

SONATRACH Chief Executive Officer Interview with NAPEC

Thursday, February 9, 2017

What are the main recent performances achieved in terms of hydrocarbon production and what are your medium-term prospects?

We recovered our historical hydrocarbon primary production capacity of more than 200 million TOE since October 2016 and thus, thanks to the commissioning of new fields such as Bir M’sana, Bir Sbaa, Garet El Befinet, Hassi Moumene,  CAFC oil and many fields in the Hassi Messaoud giant field periphery and we intend to increase this capacity by more than 7 million TOE per year, not only  through recovery efforts on existing fields such as Hassi Messaoud, El Merck and MLE, but also by the commissioning of several new fields such as Touat gas, Reggane Nord, Timimoun, Ahnet, Hassi Mouina, Hassi Ba Hamou, Tidikelt, Akabli, Tinhert, Gassi Touil periphery, MLSE satellites, Bourarhat nord, Erg Issaouane, Isarene and Tisselit North.

Does partnership hold an important place among your priorities and how do you intend to use it towards your goals?

We have learned much from our long experience in partnership, especially in oil & gas upstream since 1986, with the tremendous success both in increasing reserves and hydrocarbons production. We are well aware of how we can make it an important driver for achieving complex project success, and for enhancing our own performance. We have completed a number of partnership projects spanning over all the value chain from oil field services and upstream plant maintenance to downstream fertilizer manufacturing. We have also launched several new projects, such as the well heads and parts manufacturing unit with GE and we are under discussions with potential partners for our petrochemical projects implementation. We intend in this regard to keep up our efforts to broaden customers / suppliers traditional relationships into win/win partnership ones.

What role did your company play in promoting domestic companies’ integration in the Algerian hydrocarbon industry?

SONATRACH has been very active – long before oil prices decline in June 2014 – in strengthening production capacities of its national oil service subsidiaries, which we dedicate to services such as drilling, work over or well services, as well as the completion of some of our EPC projects by our subsidiaries. Currently, we are developing, where possible, partnerships between our national subsidiaries and Foreign Service companies, in areas such as engineering and industry parts manufacturing. We have been successfully doing that with the pipeline industry. We can speak today of a very high integration rate in this industry, thanks to our subsidiaries and national companies involved in our projects implementation regarding civil engineering, pipelines installation and manufacturing, and we can mention here companies like ENGTP, GCB, ENAC, Cosider canalisation, Alfapipe, Altumet and Kanagaz.

SONATRACH will attend the 7th NAPEC Edition, in this regard what are your expectations and goals set for your participation at this economic event of international scope?

It is in our tradition to stimulate meetings and experience sharing between industry players, whether they are operators, service companies or stakeholders in research and technology. The North Africa Petroleum Exhibition and Conference, NAPEC,  is an important event that usually gathers the greater number of oil and gas professionals in the African region, we will be there to share our partnership experience and projects development throughout the hydrocarbon chain, we will be interested in listening to others experience and will pay close attention to the latest technical and technological developments that will be presented in terms of maximizing production, performance improvement, operational excellence and facilities maintenance and integrity. And finally, we call up all those involved, directly or indirectly, in our industry to join us in this important event.


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