FOREIGN PROJECTS

Algeria

Gazprom conducts hydrocarbon exploration activities in the El Assel onshore area in Algeria

Strategy

The development strategy of Gazprom as a global energy company is targeted at building the entire gas value chain from hydrocarbon production to marketing in new markets based on the production capacities located outside Russia.

Within this strategy, the Company conducts hydrocarbon exploration activities in the El Assel onshore area in Algeria.

Cooperation

In 2006, Gazprom and Sonatrach, Algeria’s government-owned oil and gas corporation, signed the Memorandum of Understanding outlining the major areas of cooperation in the oil and gas industry.

In 2008, Gazprom signed a contract for hydrocarbon exploration and production in the El Assel onshore area with Algeria’s National Agency for the Valorization of Hydrocarbon Resources (ALNAFT). The El Assel project is implemented in partnership with Sonatrach. Gazprom EP International is the project operator. Gazprom and Sonatrach hold 49 and 51 per cent stakes in the project, respectively.

Reserves

Algeria has 4.5 trillion cubic meters of natural gas and 1.4 billion tons of oil in proven reserves.

Project implementation

The El Assel licensed area is located in the oil- and gas-bearing Berkine Basin. It comprises three blocks with a total area of 3,250 square kilometers.

In 2010, Gazprom commenced the drilling of the first prospecting well, Rhourde Sayah-2, in the El Assel license area. As a result, hydrocarbon reserves were discovered at licensed block No. 236b.

Licensed block No. 236b, El Assel area
Licensed block No. 236b, El Assel area

Licensed block No. 236b, El Assel area

In April 2016, nine prospecting and exploratory wells were drilled in the El Assel area. The research data confirmed the existence of productive hydrocarbon reserves.

As of December 31, 2017, the obligations under geological exploration phases I, II and III are fulfilled. Development plans are in place for the ZERN, ZER, RSH and RSHN fields.