Repsol and partners Sonatrach, RWE Dea and Edison have been granted authorisation to develop the North Reggane project
Authorisation was granted by the Algerian national agency ALNAFT (Agence Nationale pour the L'expertise des Hydrocarbures Resources) to develop the project in the Algerian Sahara desert. Repsol has 29.25 per cent stake in the consortium that will develop the project, in partnership and jointly operated with the Algerian State-owned company Sonatrach 40 per cent, Germany's RWE Dea AG 19.5 per cent and Edison of Italy with 11.25 per cent.
Reggane is one of Repsol's key upstream projects outlined in the Horizon 2014 strategic plan. The project includes the Reggane, Azrafil Southeast, Kahlouche, South Kahlouche, Tiouliline and Sali fields, all part of permissions granted for blocks 351c and 352c in the Reggane basin, 1,500 km southwest of Algiers.
The project aims to develop wells, surface facilities and infrastructure to exploit commercial reserves found in the blocks. Repsol expects to start production in mid-2016. Production will span 25 years, and the consortium anticipates achieving a stable production rate of eight million cmd of gas during the first 12 years.
The project includes the construction of a gas treatment plant, a gas accumulation system, a pipeline for export and infrastructure (runway, electrical systems), with a total estimated investment of approximately US$3bn for the entire project.
According to preliminary estimates, a total of 104 wells distributed throughout the six development areas (Reggane, Kahlouche, Sali, Southeast Azrafil, South Kahlouche, Tiouliline) will be developed. Basic front end engineering work (FEED), topographic and geotechnical studies as well as a 3D seismic surveying will begin in the coming months.