Rapport Annuel EN

Sonatrach
ANNUAL REPORT
2010
Message from
the Chief Executive Officer
Primary hydrocarbons production stood at nearly 214 Mtoe, of
which 55.3 millions tons of crude oil and 145.8 billion cm of
natural gas.
The sales volumes of liquid and gaseous hydrocarbons, for the
domestic market, confirm the growing sustained trend of the
country’s domestic demand with an increase of + 3% compared to 2009 and the highest priority we attach to supply the
domestic market.
In 2010, a record of twenty-nine (29) hydrocarbons discoveries was achieved, thus invigorating the initiated process of
reinforcing and expanding our reserves base in Algeria. Twenty-seven (27) discoveries were made by Sonatrach individually and two (02) in partnership.
Mr. Nordine Cherouati
Chairman and Chief Executive
Officer of SONATRACH
Sonatrach’s results for 2010 were positive with a substantial
growth across all the company’s activities.
The targets set were met and, in some cases, exceeded.
In the markets, our efforts took advantage from the surge in
oil prices which experienced a strengthening with an annual
average price of 80.1 $/bbl in 2010 for the Sahara Blend, up
29% over the previous year.
This trend was somewhat thwarted by the natural gas market
prices which remained depressed.
In this context, we consolidated the sound financial position of
Sonatrach, thus strengthening Sonatrach Group’s contribution
to the national economy.
Our exports turnover thus stood at US $ 56.1 billion in 2010,
increasing by 26% over 2009, with a net positive result of DZD
705 billion, a significant 148% rise over 2009.
The oil tax paid by Sonatrach to the Treasury rose from DZD
1983 billion in 2009 to DZD 2 520 billion, or a 27% increase over
the previous period.
04 Annual Report 2010
Regarding investment in Algeria, Sonatrach multiplied its efforts in 2010 compared to 2009. We recorded an investment
level of more than 11% in physical terms value with achievements of around US $14.4 billion equivalent.
The core of the investment program was achieved in the
Upstream (69%), including namely the drilling of 242 exploration and development wells, 148 of which carried out by Sonatrach individually.
The implementation of the established investment program
continued during 2010 including major projects such as the
«implementation of Hassi Messaoud LPG unit », the developments of Gassi Touil gas field, Rhourde Nouss Quartzites
of Hamra deposits and also of El Merk in partnership with
Anadarko, Menzel Ledjmet East in partnership with ENI, the
ongoing implementation of two mega LNG trains in Arzew and
Skikda and the rehabilitation projects of Northern refineries.
2010 also witnessed the reinforcement of our treatment,
transportation and processing capacities through the commissioning of several significant projects for the optimisation and
operation of fields and hydrocarbon production facilities,
including Hassi Messaoud South Crude Processing Unit,
phase II of Hassi R’Mel Boosting, Alrar « Early Production Facilities », Rhourde Khrouf gas reinjection unit (in partnership
with Cepsa), phase II of TFT Boosting ( in partnership with Total and Repsol), phase III of « Moctaa Douze – Beni Saf » GZ4
gas pipeline projects, which will supply the Medgaz, «Hassi
R’Mel – Arzew» LZ2 LPG transportation pipeline, and the
«Three LPG Trains» and « Nitrogen Storage and Conditioning
Centre» projects in Arzew.
The high level of investments recorded during 2010 also includes funding to support the cost of new projects, demonstrating Sonatrach’s desire to lay solid foundations for the future.
Among major projects initiated in this regard, I can mention
the rehabilitation of Rhourde Nouss 100 & 300 LPG trains,
the FEED for the development of Timimoun gas fields (in partnership with Total and Cepsa) and in Touat (in partnership
with GDF-Suez) to which I would include the project for the
«Rehabilitation and Adaptation of Algiers’ refinery facilities»
in respect of which an EPC contract worth almost 970 million
dollars equivalent was signed.
Our international activities recorded continued success: a second hydrocarbon discovery was made in Libya following the
one achieved in 2009 on Block 65 where Sonatrach is operating through its subsidiary SIPEX.
In Peru, on the Cashiriari Field, Blocks 88 and 56, in Camisea,
in which Sonatrach holds stakes, 29.5 millions of liquid hydrocarbon barrels and 12.18 billion m3 of natural gas have been
produced.
The Company’s permanent workforce remained almost stable
with 47 963 employees in 2010, or a less than 1% increase,
and 17 455 persons benefited from training.
The significant results achieved during the past year demonstrate the real capabilities of our Company and the tremendous
potential it holds.
They confirm our determination to stay the course. We are
continuing our efforts in 2011 to undertake ambitious projects up to Sonatrach’s missions and to our abilities to meet
challenges, improve management at all levels and strengthen
the steering of the Group.
For this purpose, an important program for the intensification
of efforts was set up in order to consolidate our reserves base
and, in this respect, a strategy was defined for the exploration
of our shale gas potential.
Other challenges will be addressed through the management
and implementation of large-scale projects. We do indeed
want to build a project engineering and management capacity
consistent with our strategic goals.
These efforts must obviously be coupled with the alignment of
our organization and our procedures to the supply chain and
contract management improvement imperatives, together
with reinforcing our capacities in the training and development our human resources.
To this end, and as has always been in the past, I know that we
can rely again on the commitment and dedication of Women
and Men in Sonatrach.
Sonatrach’s Human Resources are deeply committed in the
success achieved in 2010 which recorded a dynamic process
of continuous qualitative improvement involving recruitment
and training operations namely in core businesses.
Annual Report 2010 05
06 Annual Report 2010
The General Meeting
Mr. Karim DJOUDI,
Minister of Finance
Member
Mr. Abdelhamid TEMMAR,
Mr. Mohamed LAKSACI,
Governor of the Bank of Algeria
Member
Mr. Houari KHACHAI,
Representative of the Presidency of
the Republic
Member
Minister of Prospective Planning
and Statistics
Member
Mr. Youcef YOUSFI,
Minister of Energy and Mines
Chairman
Annual Report 2010 07
The Board of
Directors
Mr. Abderrahmane Raouya,
Representative of the Ministry
in charge of Finance
Membe
Mr. Youcef OURRADI,
Mr. Nordine Cherouati
Chairman and Chief Executive
Officer of SONATRACH
Chairman of the Board
Representative of the Ministry
in charge of Hydrocarbons
Member
Mr. Noureddine BOUTERFA,
Appointed for his competence
in the field of hydrocarbons
Member
08 Annual Report 2010
Mr. Hadji BABAAMI,
Representative of the Ministry
in charge of Finance
Member
Mr. Mustapha HANIFI,
Representative of the Ministry
in charge of Hydrocarbons
Member
Mr. Ali TOUATI,
Representative of the Bank of Algeria
Member
Mr. Said SAHNOUN,
Vice- President, Upstream Activity
Member
Mr. Allaoua SAIDANI,
Vice- President, Pipeline
Transportation Activity
Member
Mr. Abdelkader BENCHOUIA,
Vice- President,
Downstream Activity
Member
Mrs. Yamina HAMDI,
Vice- President, Marketing Activity
Member
Mr. Mansour KECHCHAR,
Employee Representative
Member
Mr. Abdelkrim MAHIEDDINE,
Employee Representative
Member
Annual Report 2010 09
The Executive
Committee
Mr. Nordine Cherouati
Chairman and Chief ExecutiveOfficer
Member
10 Annual Report 2010
Mr. Said SAHNOUN,
Vice- President, Upstream Activity
Member
Mr. Allaoua SAIDANI,
Vice- President, Pipeline
Transportation Activity
Member
Mr. Abdelkader BENCHOUIA,
Vice- President,
Downstream Activity
Member
Mrs. Yamina HAMDI,
Vice- President, Marketing Activity
Member
Mrs. Fatma Zohra BENOUGHLIS,
Executive Director, Strategy,
Planning and Economy
Mr. Akli REMINI,
Executive Director, Subsidiaries
and Holdings
Mr. Farid BOUKHALFA,
Executive Director, Finance
Mr. Samy TOUNSI,
Executive Director,
Engineering & Development
Mr. Younes HEGUEHOUG,
Executive Director,
Human Resources
Mrs. Naima BOUTEMEUR,
Central Director, HSE
(Health, Safety and Environment)
Annual Report 2010 11
Organigramme
Chief Executive Officer
Project Review Committee International Projects Coordinating Committee Direction of Public Relations Upstream Activity
Pipeline transportation Activity
Group Coordinating Directions
Engineering & Development Finance Human Resources Strategy, Planning & Economy Subsidiaries & Holdings Central Activities Holdings
SIHC
SPP
SIP
12 Annual Report 2010
Executive Committee
Ethics Committee
Establishment Internal Security
Downstream Activity
Marketing Activity
RCH
Central Directions
SVH
SGS
Legal Affairs
Audit Group
Markets
Health, Safety & Environment
Management of Associations
AIE
Annual Report 2010 13
14 Annual Report 2010
Introduction
2010 was characterized by a context marked by the strengthening of the Sahara Blend prices with a buoyant
growth at an annual average of $ 80.1 /bbl compared with $61.9/bbl in 2009, or an increase of + 29%. The Sahara
Blend prices, closing at $ 92.1/ bbl in December 2010, had a positive effect on the activity of Sonatrach.
At the national level, the sales volumes of liquid and gaseous hydrocarbons, intended for the domestic market,
recorded an increase of + 3% over 2009 and confirm the growing trend of the country's needs.
Corporate bodies activities
Throughout 2010, the Board of Directors of Sonatrach Spa held seven meetings where he had to assess and decide on some twenty case files related to the management and the development of the Company; 25 resolutions
have been adopted.
Annual Report 2010 15
Production of hydrocarbons
The primary production of hydrocarbons, all products The production of natural gas reached 145.8 billion m3,
combined, amounted to 213. 9 million toe, including 55.3 82% under the production of natural gas from fields opemillion tons of crude oil and 145.8 billion m3 of natural rated by Sonatrach individually.
gas.
The production of condensate (including condensate
The regions of Hassi Messaoud and Hassi R'Mel account reinjected into crude) amounted to 11.2 million tons.
for 75% of the production of Sonatrach in own effort and As regards fields operated by Sonatrach alone, the production of condensate stood at 9,02 million tons and
54% of the total primary production.
accounts for 80% of the total production.
The primary production of oil in 2010 consists of 64% of
natural gas, 26% of crude oil, 6% of condensate and 4% of The production of LPG’s (including butane & propane
fractionated in the South) amounted to 7.2 million tons.
LPG.
The production of LPG by Sonatrach alone accounted for
The production of fields operated by Sonatrach alone to- 71% of the total LPG’s production.
taled 154.8 million TOE.
As for pressure maintenance, the volume of water inSonatrach’s share in the production represents 72% of jected into the oilfields reached 63.2 million m3. Gas voglobal primary production. The principal regions inputs lumes intended for injection totaled 89.1 billion m3.
are located in Hassi R'Mel, Hassi Messaoud and Rhourde
The volumes of natural gas cycled at Hassi R'Mel are
Nouss with a total of 64% of the primary production.
close to 38.2 billion m3, representing a 44% cycling rate
The production in partnership reached 59.1 million toe in of gas primary production from the reservoir.
2010.
The production in partnership accounts for 28% of the
total primary production; the main poles are Ourhoud &
Berkine contributing up to 9% of the total production.
Crude oil production in partnership represents 52% of the
total oil production while natural gas production in partnership accounts for 18% of the total production.
The production share taken pursuant to the Exceptional Profits Tax (TPE) for 2010 stood at 2.62 million toe
against 2.53 million toe in 2009.
18 Annual Report 2010
A corporate citizen
serving the cause
of national
development
Annual Report 2010 19
Subsidiaries and Holdings in Algeria
National Subsidiaries Results for 2010:
Capital
Turnover
NAFTAL (100%)
15 840
255 275
HYPROC S.C. (100%)
12 000
Net
income
U: DZD Million
Investments
Staff (incl. temporary)
6 900
10 573
29 328
12 397
3 091
26 696
1 695
7 920
125,5
2 253
1,28
47
200
362
100
986
33
581
6
52
Holding SVH
AEC (50%)
NEAL (45%)
SPP1 (14%)
COGIZ (100%)
Holding SPP
864,36
402,9
ENSP (100%)
800
8 960
1 820
1 200
2 087
ENAGEO (100%)
7 000
15 560
1 140
2 700
5 347
ENAFOR (30%)
14 800
23 589
3 330
2 700
4 716
ENGTP (100%)
6 390
17 070
130
3 500
9 163
ENAC (100%)
3 190
5 796
1 030
1 100
3 069
GCB (100%)
7 630
10 621
1 350
780
6 513
165,22
7 800
1009
400
729
23,92
1 367
95
992
162
7 560
600
139
0
117
9 000
3 248
-511
14 472
778
CASH (38,89%)
1 088,64
7 492
665
558
275
BAOSEM (50%)
0,5
164
43
37,67
68
MI-ALGERIA (40%)
ALGESCO (24%) :
«résultats provisoires»
SAFIR (36%)
En phase projet
444
---
Holding SGS
TASSILI AIRLINES (100%)
34 Annual Report 2010
Turnover
Net
income
19,8
407,25
0
4 687
-7,21
245,31
0
780
3
2 082
40
0,1
40
50
0,13
925,44
1 742,46
800
40
465
1 656
1 333
181
99
2 120
2 072
3 824
3 035
0,4
165
61
8,9
3,02
-947
732
-60
237
0,62
8,87
271
5,38
4,92
142
27
99
63
95
3 176
1 018
71
33
573
53
2 207
2 006
3
107
32
239
13 178
0
23,4
30
20
16
Capital
Investments
Staff (incl. temporary)
Holding SIP
OSPREC (49,5%)
SARPI (50%)
Holding RCH
ACTIM (100%)
2SP (100%)
SOTRAZ (100%)
MEDCO (100%)
ISGA (16,66%)
ENOR (48%)
HELIOS (51%)
SOMIK (100%)
SOMIZ (100%)
SORFERT (49%)
20 454,46
En phase de projet
EL BAHIA FERTILIZER (49%)
2 278,50
En phase de projet
HELISON (49%)
SORALCHIN (30%)
1 742,46
1 344
AOA (49%)
6 566
Holding AIE
SKT (49%)
SKB (49%)
SKS (30%)
SKH (10%)
SKD (49%)
23 520
3 087
3 861
1 970
26 304
714
6 085
-163
-336
En phase de projet
En phase de projet
3 607
2 067
11 491
4 787
16 350
2 248
En phase de projet
Annual Report 2010 35
Participation rate
Unit
Turover
Net income
SPC Trading
100%
MM$
5 004,00
112,60
NOSVL
100%
MM$
14,99
5,88
SPMC
100%
MM$
4,31
1,91
SPOTC
100%
MM$
11,72
2,79
ALTC
100%
MM$
10,92
4,42
HMTC
100%
MM$
10,92
4,57
RNTC
100%
MM$
10,19
3,19
SGCC
100%
MM$
11,40
2,49
SGTC
Holding SPI BVI
Med LNG
100%
MM$
-
0,01
-
-
HeM
SPTC
TGP
TMPC
Samco
49%
100%
21,18%
50%
MM$
MM$
MM$
MM$
MMCHF
19,72
1,52
354,00
54,12
1,22
1,59
1,40
75,00
11,91
0,01
MM$
235,7
78,39
-
-
Holding SPC BVI
50%
Holding SIPEX BVI (*)
Sonatrach Peru
Mauritania Ta1, 30, 31 & 35
Libya Block 65
Niger Block Kafra
Mali Block 20
Mauritania Ta7 - Ta8
Mali Block 4
Libya Block 95/96
Numhyd
Egypt El Dabaa
Egypt Ras El Hekma
SIHC (20%) ;
SIPEX (80%)
SIPEX Mauritanie 100%
SIPEX Libye 100%
SIPEX Niger 100%
SIPEX Mali 100%
SIPEX 20%
SIPEX 33,33%
SIPEX Libye 50%
SIPEX 50%
SIPEX 20%
SIPEX 20%
(*) Except for Sonatrach Peru, all SIPEX BVI’s subsidiaries are currently in the research phase.
Annual Report 2010 37
Design, creation SONATRACH DCGRH.DCSI.B&N / 2011
Headquarters - Chemin Djenane El Malik, Hydra, Algiers, Algeria
Phone: 213 21 54 70 00 - Fax: 213 21 54 77 00
Website: www.sonatrach-dz.com - Email: sonatrach@sonatrach.dz