Repsol has started production from the Reggane Nord gas fields in Algeria, marking the completion of one of the company’s most significant projects in Africa. Reggane Nord is in the south-west of Algeria, approximately 1,500 km from Algiers, in the Sahara desert.
The Prime Minister of Algeria, Ahmed Ouyahia, Repsol Chief Executive Officer Josu Jon Imaz and the President and Director General of Sonatrach Abdelmoumen Ould Kaddour attended the ceremony held to mark the startup of the project together with representatives of the government of Algeria and the other companies in the consortium.
The Reggane project is expected to be running at full capacity of 8 million cubic meters of gas per day from January 2018 – enough to supply over 10% of Spain’s gas demand.
This project fits in with the company’s focus on gas as a key transition fuel into a less carbon-intensive energy mix. Two-thirds of Repsol’s overall production is gas, which also accounts for three quarters of the company’s reserves.
The Groupement Reggane-Nord (GRN) consortium is co-operated by Repsol (29.25%) and Sonatrach (40%) with partners DEA Deutsche Erdoel AG (19.5%) and Edison (11.25%).
Six gas fields are contributing to the Reggane Nord project (Azrafil Sud-Est, Kahlouche, Kahlouche Sud, Tiouliline, Sali and Reggane.) The Reggane North project is expected to be in production until at least 2041.
Repsol and its partners have built a Central Processing Facility and significant infrastructure to process the gas collected from the wells distributed in six different fields: 209 km of collecting gas system and more than 160 km of roads were constructed as well as a 74 km pipeline connecting the project to Algeria’s export facilities.
Repsol currently holds rights to five production blocks (Tin-Fouye Tabankort, Menzel Ledjmat North, El Merk, Ourhoud and Reggane Nord) and two exploration blocks (South East Illizi and Boughezoul.)
Repsol’s net production in Algeria amounts to almost 13,000 barrels of oil equivalent per day. Net proved reserves of liquids and natural gas at year end 2016 were estimated to total 27.4 Mboe.