RWE Dea AG is making efforts to extend its production activities in North Africa. The company has now obtained the permit to develop a total of six natural gas fields in the Algerian Sahara.

The Algerian ALNAFT authority has issued the permit to develop the Reggane, Azrafil South-East, Kahlouche, Kahlouche South, Tiouliline and Sali gas fields in the Algerian desert. „We are pleased that this project will enable us to further strengthen our long-term commitment in Algeria and North Africa“, says Christoph Schlichter, Senior Vice President Production North Africa at RWE Dea.

In 2002, RWE Dea started work in the Reggane North concession area, together with Repsol (as operator) and Edison as partners, and successfully completed the exploration phase with corresponding natural gas discoveries in 2009. „We are now faced with the task to prepare production from the six fields together with our partners. We expect that we can start commercial gas production during the first half of 2016“, reports Schlichter.

Besides RWE Dea AG, which holds 19.5 per cent, the consortium members are the Algerian state-owned company Sonatrach (40%), as well as Repsol from Spain (29.25%) and Edison from Italy (11.25%).

The total capital spending for the development project is around 3 billion US dollars. The production period will be more than 25 years. The Field Development Plan foresees a constant production rate of 8 million cubic metres of gas per day over a production period of 12 years.

„Especially regarding the efforts of the European Union to achieve greater diversification in the field of energy supply, Algeria is increasingly playing a major role as a gas exporter and thus as a trading partner for Europe“, explains Ralf to Baben, Chief Operating Officer at RWE Dea AG. „In the medium term, our current project in Algeria will contribute to this development“, continues to Baben.

Field development in the Algerian Sahara will be carried out by a joint company that will be established by the project partners for this purpose during the next few months.