Algerian gas development project granted authorisation

A map indicating the location of the Reggane project.

A map indicating the location of the Reggane project.

Repsol, Sonatrach, RWE Dea and Edison have been granted authorisation from the Algerian Agence Nationale pour the L’expertise des Hydrocarbures Resources to develop the North Reggane project in the Algerian Sahara desert, which involves a 100 km gas pipeline.

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

The approximately $US3 billion project will involve construction of a 100 km, 24 inch diameter gas export pipeline – which will originate in Reggane and end in Dorsal – as well as a gas treatment plant, a gas accumulation system, and associated infrastructure (runway, electrical systems).

Repsol expects to start production in mid-2016. Production will span 25 years, and the consortium anticipates achieving a stable production rate of 8 MMcm/d of gas during the first twelve years.

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

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