Repsol has been present in Algeria since 1973. Since 1991, Repsol has maintained a permanent office in Algiers to support its activity in the country and strengthen its links with authorities and institutions, including its relationship with Sonatrach, ALNAFT and ARH. Repsol has about 100 employees depending on the Algeria Business Unit.
Repsol is currently involved in the exploitation of four projects in production Menzel Ledjmet Nord (MLN), El-Merk, Ourhoud and Reggane.
Algeria is a strategic area for Repsol due to its natural resource potential and geographical proximity to Spain (one of the main recipients of Algerian gas).
Repsol's average production in Algeria in 2023 is more than 60,000 Boe/day (2 % of the Group's global net production), of which nearly 60% is gas. Repsol has proven reserves in Algeria of 50 million barrels (2% of Repsol's net proven reserves, calculated in barrels equivalent). The capital employed in Algeria at the end of December 2023 is 312 million dollars and the total investments of the last five years amount to 290 million dollars. Repsol is the sixth largest international company, in order of production, and the seventh largest in order of reserves.
Main figures, lines of action, and facilities map
Hydrocarbons activities in Algeria
The Algerian government promulgated in December 2019, the new hydrocarbon law n°19-13 with better fiscal terms to attract more investment in the upstream business.
The hydrocarbons activities are governed by this new law n°19-13 and its executive decrees (about 42 decrees). Notably however, all the existing contracts are under the old hydrocarbon law n°86-14. So far only 5 new contracts have been signed under this new law. The new Law seems to have attractive fiscal regime and contractual flexibility (especially for the new contracts) which covers:
The upstream activities include the activities of prospecting, exploration, appraisal, and exploitation of hydrocarbons; as well as processing facilities, compression, gathering system, storage and expedition facilities and site abandonment activities.
Upstream concession by which ALNAFT allows the national company the right to carry out exploration and exploitation activities on a perimeter, delivered by ALNAFT for an initial duration of 30 years.
Deed of Assignment: by which ALNAFT grants to the contracting parties (National Company & any pre-qualified person) the right to carry out research and exploitation activities within a defined perimeter.
Hydrocarbon contract: contract for upstream activities concluded between the national company and a pre-qualified Company, for a period of 30 years.
• Two (02) periods: Exploration Period (Max. 7 years) and an Exploitation Period (30 year less duration used for exploration).
Main projects
Block 405a
Block 405a are composed of Menzel Ledjmet (MLN) and Ourhoud (EMK) fields. These are low-risk liquids producing assets. The Menzel Ledjmet fields produce around 22,000 barrels/day of oil. Repsol's share is 35% (operated by Indonesia's Pertamina 65%). Ourhoud has a production close to 60,000 bbl/d, being one of the most prolific producing fields in the country.
Main businesses
Lubricants
Repsol Lubricants has been a supplier since 2011 of the state-owned hydrocarbon marketing company, Naftal (a subsidiary of Sonatrach). The diferent type of products are packaged under the Naftal brand and sent to the Algerian company for distribution and sale.
Our commitment to sustainable development
Repsol is committed to sustainable development and applies this principle in all its operations. Specifically, in Algeria:
Contact
Addrees:
Oriental Business Park-2ème ètage
Quartier d'affaires d'Alger, Bab Ezzouar-Alger
Last updated: December 2023
