Reggane North Development Project, Sahara Desert, Algeria

Reggane North or Reggane Nord Development Project involves the development of six gas fields: Reggane, Azrafil Southeast, Kahlouche, South Kahlouche, Tiouliline and Sali located in blocks 351c and 352c of the Reganne basin in the Algerian Sahara desert.

The offshore site is situated 1,500km south-west of Algiers, the capital city of Algeria, the country ranked tenth with the biggest gas reserves in the world.

The project is being implemented by Groupement Reggane partners, comprised of Repsol (29.25%) (the operator), RWE Dea (19.5%), Sonatrach (40%) and Edison (11.25%). The development cost for the project is estimated to reach €2.22bn (approximately $3bn). Groupement spent around- $450m in the Reganne development plan from 2008 to 2012.

Reggane North Development Project forms part of Phase I of the larger Southwest Gas Project, which also involves the development of the Timimoun and Touat gas fields. The three gas fields are all expected to start production by 2017 and will contribute to the country's gas output target of more than one trillion cubic feet per year by 2018.

In Salah Southern Fields Development Project, Algeria

In Salah Southern Fields (ISSF) development project is part of the In Salah Gas (ISG) project, which includes the development of seven gas fields located in the Saharan desert in Algeria.

Reggane North discovery, geology and production capacity

Exploration activities at the site started in 2002 with the grant of the concession rights to Repsol, RWE Dea and Edison the same year.

Discovery of gas in the concession was announced in April 2006 from the exploration wells Reggane-5 and Sali-1, while the last discovery from the concession was the Kahlouche Sud well in January 2009.

The 3D seismic survey for the project covering an area of 1,450km² was completed in April 2014 and 15 exploration wells were drilled during the exploration phase. The gas reserves are located predominantly within Lower Devonian (Siegenian) and Carboniferous sandstones.

The fields are estimated to produce eight million cubic metres per day of gas or 283 million cubic feet per day of gas (100 billion cubic feet per year of gas) for the first 12 years. The lifespan of the fields is estimated to be 25 years, during which approximately 1.7 trillion cubic feet of gas are estimated to be produced.

Reggane Nord project development details

The development plan for the project was approved in November 2011, the final go ahead was given by the Algerian national agency ALNAFT (Agence Nationale pour the L'expertise des Hydrocarbures Resources) in February 2012, construction works began following the award of the main contract to Petrofac in May 2014, and first production is expected in mid 2017.

Up to 26 production wells will be drilled and surface facilities will be constructed to bring the field into production. The long-term plan envisions the development of up to 104 wells across the six fields.

"The long-term plan envisions the development of up to 104 wells across the six fields."

The project further entails the construction of a gas treatment plant with a capacity of eight million m³/day, a gas gathering system, a pipeline for export, and infrastructure including runway and electrical systems.

Contractors involved with the Algerian gas field

The engineering, procurement, construction, commissioning and start-up (EPCCSI) contract for the gas treatment, accumulation and export facilities was awarded to Petrofac, for $970m.

Sonatrach's subsidiary National Company of Civil Engineering (GCA Spa) has been awarded the contract to carry out works on a road system covering 162km, construction of an airstip, and supply of 26 drilling rigs.

Genesis Oil and Gas Consultants performed the basic front-end engineering and design (FEED) for the project.

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