In 2016, our presence in Algeria was focused on our Upstream business.
Net surface area
of mineral rights
barrels of oil
equivalent per day
Net proved reserves
of oil equivalent
As of December 31st, 2016, we owned mineral rights to eight blocks in Algeria: Two exploration blocks with a net surface area of 11,566 km2 and six production/development blocks with a net surface area of 1,178 km2.
Net production in 2016 amounted to 3.4 Mbbl of liquids and 15.6 bscf of natural gas, with a total equivalent net production of 6.2 Mboe (16,836 boe/d), from the TFT block (jointly operated by Sonatrach and Total) and blocks MLN, MLSE, and Ourhoud. Net proved reserves of liquids and natural gas at year end were estimated at 27.5 Mboe.
By the end of the year, the company was focusing its operations in the country on the exploitation of four producing assets (Tin-Fouye Tabankort, MLN, MLSE, and Ourhoud), a large gas development project considered key in the 2012-2016 Strategic Plan (Reggane), and also on another development block (EMK) and two exploration blocks (SE Illizi and Boughezoul).
During 2016, development work continued in the important Reggane Nord gas project, both in the building of surface installations and in the drilling of wells, with three drilling rigs in operation in 2016. In January 2015, development drilling began. Development work is expected to last 36 months and gas production is expected to commence at the end of 2017, with a 100% output target of 8 million m3 of gas per day.
This gas project in the Algerian Sahara includes the development of six fields (Reggane, Kahlouche, Kahlouche Sud, Sali, Tiouliline, and Azrafil Sudest) in the Reggane basin, about 1,500 kilometers southeast of Algiers. Repsol has a 29.25% stake in the project, operating jointly with the Algerian state-owned company Sonatrach (40%), the German company Dea AG (19.5%), and the Italian company Edison (11.25%).
In the first half of 2016, the second exploratory drilling and appraisal campaign was completed in the Sud-Est exploration block in Illizi, with the TAOR-1 exploratory well (under evaluation) and the TIHS-2 appraisal well (positive).
Repsol has a 52.5% stake in the exploration phase and is the operator of the block. Italian company Enel holds a 27.5% stake and French company GDF SUEZ has the remaining 20%. In a future development and production phase, state-owned company Sonatrach will have a 51% stake and the rest of the consortium will have the remaining 49% distributed in the mentioned proportions.
The successful exploration of this block since 2012 (five exploration discoveries between 2012 and 2016, plus four appraisals) confirms the high potential of the Sud-Est Illizi block.
Information on net production, net proved reserves, and mineral rights as of December 31st, 2016