According to the 2010 BP Statistical Energy Survey, Algeria had proved oil reserves of 12.2 billion barrels at the end of 2009 or 0.91 % of the world's reserves. African countries with the largest oil reserves are Libya, Nigeria, Angola and Algeria.
Algeria produced an average of 1810.8 thousand barrels of crude oil per day in 2009, 2.03% of the world total and a change of -9.1 % compared to 2008. Nigeria, Algeria, Angola and Libya made up the bulk of Africa's oil production.
In March 2005 OPEC announced Algeria'scrude oil production level at 878 000 barrels per day - an increase of 16 000 barrels per day (862 000 b/d) in November 2004. Algeria's average crude oil production during 2004 was 1.23 million barrels per day (bbl/d). Together with 445,000 bbl/d of lease condensate and 250,000 bbl/d of natural gas plant liquids, Algeria averaged about 1.93 million bbl/d of total oil production during 2004, up steadily from 1.86 million bbl/d in 2003 and 1.57 million bbl/d in 2002. Algeria's plans to produce 1.5 million bbl/d of crude oil in 2005 and 2.0 million bbl/d by 2010, a level it will likely reach at current levels of production growth.
Domestic oil consumption was estimated at 246,000 bbl/d in 2004 making Algeria a net oil exporter (including all liquids) of 1.68 million bbl/d. Approximately 90% of Algeria's crude oil exports go to Western Europe, with Italy as the main receipient followed by Germany and France. Algeria's Saharan Blend oil, 45° API with negligible (0.05%) sulfur content, is among the highest quality in the world, and European countries have relied upon Algerian oil to help meet increasing stringent EU regulations on sulfur content of gasoline and diesel fuel.
Sonatrach operates the largest oil field in Algeria, Hassi Messaoud. Located in the center of the country, Hassi Messaoud produced about 350,000 bbl/d of in 2004, down from 550,000 bbl/d in the 1970s, but up from 300,000 bbl/d in 1989. The Hassi Messaoud area contains an estimated 6.4 billion barrels, just under 60% of the country's proven oil reserves, and Sonatrach hopes to double production at the field to 700,000-750,000 bbl/d within 5-7 years. Sonatrach also operates the Hassi R'Mel field (north of Hassi Messaoud, south of Algiers), which produced 180,000 bbl/d of crude in 2004. Other major fields operated by Sonatrach include Tin Fouye Tabankort Ordo, Zarzaitine, Haoud Berkaoui/Ben Kahla, and Ait Kheir. In February 2004, Sonatrach announced that it had discovered a new oilfield near Rhourde El Baguel, east of Hassi Messaoud, with possible oil reserves of 360 million barrels.
Foreign oil operators have steadily increased their share of Algeria's oil production. The largest foreign oil producer is Anadarko, with output of 530,000 bbl/d. The company operates the Hassi Berkine South (300,000 bb/d) and Ourhound (230,000 bbl/d) fields in eastern Algeria. Anadarko is developing seven new oil and gas fields in Block 208 of the Berkine Basin; first production from the fields (EKT, El Merk, El Merk N, El Merk E, El Merk C, El Kheit, and El Tessekha) is possible by 2007, with output eventually reaching 150,000-200,000 bbl/d of crude oil and condensate. Exploration success rates in the Berkine Basin have been high, and several billion barrels of oil may lie within 15 miles or so of the area.
BHP-Billiton operates the Rhourde Oulad Djemma (ROD) project in eastern Algeria, a series of six satellite fields that should produce 80,000 bbl/d once fully on-stream in late 2005. Amerada Hess has operated the Gassi el Agreb/Zotti field since 2000, with annual production of 40,000 bbl/d. In July 2000, several companies (Burlington Resources, Talisman, and Sonatrach) announced that they would develop the MLN (Menzel Ledjmat North) field in Block 405a. MLN should produce around 35,000-40,000 bbl/d when completed, with initial output of 14,000 bbl/d. Other major foreign producers in Algeria include Cepsa (Ourhoud, Rhourde El Krouf), and Agip (Bir Rebaa).
In April 2005 Gulf Keystone (AIM-GKP), an independent oil & gas exploration company, today announced that it had signed an exploration permit covering the Benguecha Permit, blocks 108 and 128 in north eastern Algeria's Constantine Basin. The contract for the two blocks establishes a joint venture between Sonatrach and Gulf Keystone.
Halliburton has an eight-year contract to provide EOR services and boost production at Hassi Messaoud, which saw production fall sharply beginning in the mid-1980s. In February 1996, Arco (now owned by BP) signed a $1.3 billion partnership with Sonatrach to increase production at Rhourde El Baguel. The Rhourde El Baguel field is Algeria's second-largest, containing about three billion barrels of proven oil reserves, but the field has produced less than 450 million barrels since 1963. BP expects to raise the field's output from 27,000 bbl/d to 125,000 bbl/d by 2010.
In September 2003, Brazil's Petrobras signed a deal with Sonatrach to explore for oil in Algeria, and in December 2003, Algeria and China's CNPC reached a similar agreement. Also in December 2003, Cepsa and Total won drilling and exploration rights on the Bechar block in the Sahara desert. Sinopec won a $525 million contract in October 2002 to help increase the crude oil recovery rate at Zarzataine, near Hassi Messaoud. In November 2002, the Kuwait Foreign Petroleum Exploration Company (KUFPEC) and Anadarko announced a partnership to further explore the Berkine Basin; KUFPEC has not been active in Algeria for over 10 years.
During 2004, Algeria held its fifth licensing round for foreign development of oil and natural gas reserves. Exploration rights were awarded to: Amerada Hess (U.S.), BHP-Billiton (Australia), CNPC (China), Petroceltic (Ireland), Repsol-YPF (Spain), Sinopec (China), and Statoil (Norway).
Algeria uses seven coastal terminals for the export crude oil, refined products, liquefied petroleum gas (LPG) and natural gas liquids (NGL). There are facilities located at Arzew (Algeria's largest crude oil export port), Skikda (Algeria's second largest crude oil export port), Algiers, Annaba, Oran, Bejaia, and La Skhirra in Tunisia. Arzew handles about 40% of Algeria's total hydrocarbon exports, including all of its NGL, LPG, and oil condensate exports.
Algeria's oil pipeline network facilitates the transfer of oil from interior production fields to these export terminals. Sonatrach operates over 2,400 miles of crude oil pipelines in the country. The most important pipelines carry crude oil from the Hassi Messaoud field to export terminals.
Algeria operates one crude oil pipeline connection to a foreign country. The 160-mile, 304,000-bbl/d OT1 pipeline connects the In Amenas oil field in the southeastern part of the country to the export terminal in La Skhira, Tunisia.
