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Repsol to develop the Reggane North gas fields in Algeria

  • The Algerian government has authorised the development plan for the six fields of the North Reggane project in the Algerian Sahara desert.
  • Repsol holds a 29.25% stake in the consortium, in partnership and jointly operated with Sonatrach (40%), RWE Dea (19.5%) and Edison (11.25%).
  • Total investment for the development of the project is estimated at 2.225 billion euros ($3 billion), including the construction of operational and support infrastructure.
  • The consortium expects to start production in mid-2016, and reach stable production of 8 million cubic metres/day of gas during the first 12 years.
  • Repsol has a long historical presence in North Africa, where it produces 50,000 barrels of oil equivalent a day.  

Press Release

14 February 2012 14:20 CET

Repsol and partners Sonatrach, RWE Dea and Edison have been granted authorization from the Algerian national agency ALNAFT (Agence Nationale pour the L'expertise des Hydrocarbures Resources) to develop the North Reggane project in the Algerian Sahara desert.

Repsol has 29.25% stake in the consortium that will develop the project, in partnership and jointly operated with the Algerian State-owned company Sonatrach 40%, Germany’s RWE Dea AG 19.5%, and Edison of Italy with 11.25%.

Reggane is one of Repsol’s key upstream projects outlined in the Horizon 2014 strategic plan. The project includes the Reggane, Azrafil Southeast, Kahlouche, South Kahlouche, Tiouliline and Sali fields, all part of permissions granted for blocks 351c and 352c in the Reggane basin, 1,500 km southwest of Algiers.

The project aims to develop wells, surface facilities and infrastructure to exploit commercial reserves found in the blocks. 

Repsol expects to start production in mid-2016. Production will span 25 years, and the consortium anticipates achieving a stable production rate of 8 million cubic metres/day of gas during the first 12 years.

The project includes the construction of a gas treatment plant, a gas accumulation system, a pipeline for export and infrastructure (runway, electrical systems), with a total estimated investment of 2.225 billion euros (approximately $3 billion) for the entire project.

According to preliminary estimates, a total of 104 wells distributed throughout the six development areas (Reggane, Kahlouche, Sali, Southeast Azrafil, South Kahlouche, Tiouliline) will be developed.

After the approval of the development plan on November 30, 2011, basic front end engineering work (FEED), topographic and geotechnical studies as well as a 3D seismic surveying will begin in the coming months.

Repsol in Algeria

Repsol has been present in Algeria since 1973. Since the end of 2010, Repsol has a permanent office in Algiers to support its growing activity in that country and strengthen the company’s links with government authorities and institutions as well as with partner Sonatrach. 

Repsol has progressively increased its presence in Algeria through active participation in successive bidding rounds that have taken place in recent years. 

Currently, Repsol is involved in two producing projects (Issaouane and Tin Fouye Tabankort), a development project (North Reggane) and an exploratory project (SE Illizi) awarded in 2010. 

North Africa has in the last few years been one of the company’s five strategic growth areas. The development of the basin of North Reggane (blocks 351c-352c) is one of the key projects included in the company’s strategic planning.

Investment in recent years has led to a sharp increase in exploratory activity. Net investment of Repsol exploration in that country exceeds 400 million euros between 2005 and 2008. Between 2008 and 2012, Repsol has invested 450 million euros, in the Reganne development plan.

Repsol currently produces around 50,000 barrels of oil equivalent per day in the North of Africa.  

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