Sonatrach to increase CAPEX by 50% in 2013
Based in 2010 numbers, Algeria is the fourth largest crude oil producer in Africa and fourth largest exporter for natural gas after Russia, Qatar and Norway.
Algeria is member of OPEC and as such must respect the production quotas for the crude oil.
In addition Algeria domestic consumption of natural gas increases constantly, so that 2,000 MW of gas-fired power plant should be installed on the next two years.
The gas to used for the supply of the power generation will be taken out of the export of the country, unless Sonatrach will manage to increase production accordingly.
But these giant projects are also depending on the gas supply.
Total Timimoun to unlock Sahara untapped reserves
After some changes in the management, Sonatrach is now keen to revitalize projects left on hold for a couple of years such as the Timimoun project in joint venture with Total from France and Cepsa from Spain.
For the Timimoun project, Sonatrach and its partners are associated through the Groupement Timimoun (GTIM) where they share the working interests:
– Sonatrach 51% is the operator
– Total 37.75%
– Cepsa 11.25%
Timimoun is a non conventional gas project covering 2500 square kilometers with eight different plays located in the center of Algeria, 1,250 kilometers south of Alger in between Timimoun and Adrar cities.
The Timimoun development was planned to start in following in 2010, before being stopped and shelved until now.
In the meantime, Sonatrach and its partners completed the basic engineering phase, so that the Timimoun project should include:
– 40 wells to tap the eight structures over an area of 2, 500 square kilometers
– Gas gathering system
– Gas central processing facilities
– Connection to the export pipeline
Sonatrach is in charge to build the export pipeline to link the Timimoun facilities to the Hassi Rmel hub, 600 kilometers north.
Timimoun is designed to produce at plateau production 1.6 billion cubic meters per year (160 million cf/d) of natural gas during a period of eight years.
Sonatrach and its partners are planning to invest $1.5 billion capital expenditure in the Timimoun project with the engineering, procurement and construction (EPC) phase to begin in 2013, for a first production in 2016.