Houston, 14 december 2016

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  I. SONATRACH : AN INTEGRATED OIL AND GAS COMPANY

  II. SONATRACH : INVESTMENT OPPORTUNITIES

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I . SONATRACH : AN INTEGRATED OIL AND GAS COMPANY

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Professionalism Long term oriented partner

90%

SALES

90% of sales primary hydrocarbons.

70%

INVESTMENTS

70% of investment volumes dedicated to development

of upstream projects.

Transport par Canalisation

Transport Maritime

Recherche & Exploration

Exploitation & Production

Raffinage

Développement Marketing

Distribution

Pétrochimie

Activité E&P Exploration & Production

Activité TRC Transport par Canalisation

Activité LRP Liquéfaction Raffinage

Pétrochimie

Activité COM Commercialisation

STH AOA SORFERT HELISON

Liquéfaction & Séparation

Filiales support

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1 553 488 km2 (6% offshore)

38 projects in Development (10 in

partnership)

33 contracts with foreign partners (8 exploration ; 25 in the development)

19 600 km Network •  34 pipelines •  82 Pumping & compression

stations •  4.3 MTM Storage capacity

(liquids) 2 Main Hubs : •  CNDG Gas Hub

at Hassi R’Mel •  CDHL Oil Hub

at Hassi Messaoud

3 International Gas Pipelines •  MEDGAZ to Spain •  GPDF to Spain •  GEM to Italy

Current capacities Development Liquéfaction du Gaz

Naturel - GNL Séparation des

Gaz - GPL

GL1Z

17.5 millions m3/an

GL2Z

17.8 millions m3/an

GL3Z

10.6 millions m3/an

GL1K

10 millions m3/an

GL1Z

17.5 millions m3/an

GL2Z

17.8 millions m3/an

GL1Z, GL2Z, total capacity = 35.5 millions m3 p.a

GP1Z

GP2Z

09 millions tonnes/an

1,4 millions tonnes/an

Rev

ampi

ng

LNG = 56 millions m3/y. LPG = 10.4 million tonnes p.a

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Current configuration : 06 reffineries ; 30 MTPA

Adrar

Alger

Hassi Messaoud

Arzew

Skikda 2

Skikda 1

3.6 MTA

1.07 MTA 0.6 MTA

3.7 MTA 16.4 MTA

5 MTA

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INTERNATIONAL MARKET

Value creation oriented

LOCAL MARKET (priority)

Public service Oriented

  10% of the Light Sweet Market,

  Major exporter of naphta and condensate and Fuel oil,

  The Top n°1 LPG exporter on the Mediteranean.

  Mandated to ensure public service missions :

  Furnish oil and gas and LPG to the domestic market

  Imports of fuels (in case of deficit)

  Guarantee the ToP of desalted water.

1 427

BCM Natural Gas 53%

LNG 47%

Italian Market 35%

GEM +LNG Since 1983

Spanish Market 50%

Since 1975

Europe North America Asia

South America

2014 EXPORTS Assessment Millions Toe

Middle East

68,8 10,5

4,8 7,9 0,02

6,3

Oil Condensate Refined product LPG LNG Natural Gas

II . SONATRACH : INVESTMENT OPPORTUNITIES

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Investment Opportunities

I. Manufacturing of Spare parts for

the Oil and gas Industry

II. Energy Efficiency

III. Development of petrochemical

industry

What we expect from the US

market ?

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Designation Description

Pipes and Tubes •  Differents diameters (for various oil, gas and water products). Casing .

Doors Chokes •  -------------------------------------------------------------------------------------------------------------

Funds facilities •  -------------------------------------------------------------------------------------------------------------

Pumps •  Shipping pumps (crude or gas), metering pumps (chemical inhibitor), horse head pumps, suction pumps, pump jacks, fire-fighting pumps

Fittings •  Clamps, threaded rods, repair clamps, bends, sleeve, cap, nipple, various fittings ...

Capacities •  Tanks, storage bins, containers.

Electrical equipments •  Power transformers, electric LV switchboards, MV electrical protection cells, LV and MV electric motors, industrial ups, LV and MV electrical cables ...

Solar Panels •  Various surfaces

FO Cable Assemblies •  Various telemetry and telecommunication uses

Instrumentation •  Self-operated control valves, safety valves, solenoid valves, smart transmitters, pressure and temperature

gauges (pressure gauges and thermometers), measuring instruments, recorders (pressure, DP flow, temperature), pressure reducing valves and converters

Batteries •  Various uses

Designation Description

Thermal Insulation •  Insulation and related aspects

Filtering •  Lubrication and greasing , sealing, hydraulics, air.

Paints •  Various applications

Chemicals •  Various applications

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Energy Efficiency potential

•  The consumption of the "oil and gas sector" accounts for almost 25% of the national energy consumption.

•  More important than the whole industrial sector as an end-user,

•  Its demand is much easier to focus on (managed principally by SONATRACH). •  Transformation losses reflect the performance levels of existing «oil and gas»

technologies.

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Some breakthroughs

•  In 2012, SONATRACH has been awarded the World Bank "Global Gas Flaring Reduction at the Global Forum on Flaring Reduction & Gas Utilization for Development. The quantities of flared gas decreased from 78% in 1973 to 8.7% in 2013.

•  SONATRACH increased its refining capacity by about 28% and brought immediate impact on refineries energy consumption :The efficiency of the refining system was around 90% in 2010 and could be raised to almost 93,5% in 2014.

•  Installed 10 MW of PV at BRN field with ENI.

PETROCHEMICAL INDUSTRY

Counter balance the decrease in oil prices

Substitute to imports.

An opportunity to monetize

stranded gas.

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Ethylene unit

• Skikda ; extend the production capacity to 120 KTPA of ethylene.

MTBE

• 200 KTPA of MTBE in order to feed our refineries.

Methanol •  1 MMTPA of methanol

PP

•  Mixed feed (Naphta, LPG) •  2 MMTPA Naphta ; 0,62 MMTPA of C3 and 0,2 MTPA of C4

PDH/PP •  500 KTPA of PP ; 600 KTPA of C3

Synthetic Rubber

Tires •  5 million Units p.a

LAB • 100 KTPA of LAB ; 200 KTPA of normal paraffins.

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US market

Exploring new partnership schemes.

Learning from the experience

of shale development

Acquiring oil and gas reserves.

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0

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10,000

15,000

20,000

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1976

19

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Crude oil exports

Condensate LPG

Refined products

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27

0

2000

4000

6000

8000

10000

12000

14000

1976

1978

1980

1982

1984

1986

1988

1990

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1994

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LNG

THANK YOU FOR YOUR ATTENTION

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