SONATRACH ANNUAL REPORT 2006 - s3.amazonaws.coms3.amazonaws.com/zanran_storage/€¦ · SONATRACHannual report 2006 Headquarter ... blocks (1, 2, 3, 4 and 9) of the Taoudeni basin

SONATRACHannual report 2006

Headquarter - Chemin Djenane El Malik, Hydra, Algiers, AlgeriaPhone: 213 21 54 70 00 - Fax: 213 21 54 77 00

Website: www.sonatrach-dz.com - Email: [email protected]

As a commitment to preserving the environment, this document is printed on fully ecologic paper bleached without chlorine.

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Contents

02 Message from the Chairman04 Annual General Meeting06 The Boards of Directors08 The Executive Committee10 Organisational structure12 Highlights of the year14 Gas18 Upstream34 Pipeline Transportation44 Downstream58 Marketing76 Sustainable Development80 Human Resources94 Subsidiaries and Participations96 Financial Report

SONATRACH

annual report 2006

MESSAGE FROM THE CHAIRMAN

2 / SONATRACH 2006

Mr Mohamed MezianeChairman and Chief Executive Officer

In 2006, Sonatrach posted strong across-the-board growth and outperformed the already excellent results of financial year 2005.Indeed, we continued to develop our

business lines and expand our hydrocarbon reserve base, by increasing our hydrocarbon production potential, while reinforcing our transportation infrastructure, developing our downstream goals as well as reinforcing our positions on the international market.

The most significant results for the year included: • hydrocarbon production volume of 229.8 million

TOE. Crude oil production of 63.7 million TOE, up by 2% over 2005. Natural gas production reached 149.5 billion cm, also representing 2% increase over the previous year;

• a total volume of nearly 165.3 million TOE of hydrocarbons was sold. 136 million of which wax delivered to the international market and more than 29 million to the domestic market;

• overall turnovers of ADD 4,223 billion with record export turnovers of around USD 53.6 billion;

• investment volume of around 05 billion dollars;• net income of ADD 540 billion.

Sonatrach’s financial ratios clearly indicate the stability of our group’s economic profitability and solvency positions. All ratios are satisfactory and show a positive trend. For example, operating income represents 58% of turnovers while cash flow covers 92% of all medium and long-term debt.

SONATRACH 2006 / 3


We continued to implement Sonatrach’s overall strategy around the following focus points:• expansion of our hydrocarbon reserves with

the discovery of seventeen (17) new sites.This is more than twice our discoveries in 2005 which revealed a hydrocarbon volume of nearly 118 million TOE;

• increasing our hydrocarbon potential with, among other achievements, the production launch of the Alrar oil ring, the commissioning of Bir Berkine and Bir Berkine North oil production projects, the In Amenas gas project, and the Mesdar partner gas recovery station;

• development of our Downstream projects, with our proprietary resources, investments in maintenance, reliability and the safety of existing facilities, enforcement of the EPC contract for the Skikda condensate Topping project and, in partnership, the production launch of the Skikda helium unit and the admission of crude oil into the Adrar refinery.

• reinforcing our transport, storage and shipping infrastructure with in particular, the commissioning of many projects including the OH4 30” Hassi Berkine-Haoud El Hamra pipeline, the high sea loading stations on the Skikda sites and the SP2 Laghouat station for the LPG 24” pipeline (Hassi R’Mel–Arzew).

We continued and maintained the controlled pace of our operations outside Algeria.In 2006, Sonatrach reinforced its international upstream activities through a first offshore experiment and the acquisition, in partnership with STATOIL, of two exploration blocks (09 and 10) located in the deep Egyptian offshore.

We also signed with ENI and the Baraka group, an equity stake agreement of 25% in the production share contracts of 5 exploration blocks (1, 2, 3, 4 and 9) of the Taoudeni basin in Mali.

Other achievements in 2006 included the continued upgrade of our management system and the improvement of Sonatrach’s operation and performance, with in particular:• the creation of two new organisation

structures: the Direction Coordination Groupe Activités internationales and the Direction Centrale coordination technique et développement;

• the creation of internal audit standards comprised of a Sonatrach group control policy, an internal audit charter and a code of ethics and professional conduct for our group’s internal auditors;

• a large-scale action plan focused on HSE management, promotion and enhancement emphasized Sonatrach’s deep concern for employee health, the safety of our installations and environmental protection.

Human resources is a top priority for us and in 2006, we solemnly adopted the Sonatrach human resource policy and gave a new impulse to our Group’s personal and professional development projects, the development of skills, the recognition of merit and reward of performance.

That is the primary driver for our future development and the key to achieving even more success in upcoming years.

ANNUAL GENERAL MEETING

4 / SONATRACH 2006

Mr Chakib KhelilMinister of Energy and Mines – Chairman

Mr Mourad MedelciFinance MinisterMember

SONATRACH 2006 / 5

Mr Brahim GhanemPlanning DelegateMember

Mr Mohamed LaksaciGovernor of the Bank of Algeria – Member

Mr Houari KhachaiRepresentative of the Presidency of the Republic – Member

THE BOARD OF DIRECTORS

6 / SONATRACH 2006

Mr Boumediene BelkacemRepresentative of Sonatrach Member

Mr Hocine ChekiredRepresentative of Sonatrach Member

Mr Mohamed Abdou BouderbalaRepresentative of the Minister of FinanceMember

Mr Hadji Baba AmmiRepresentative of the Minister of FinanceMember


SONATRACH 2006 / 7

Mr Abdelhafid FeghouliRepresentative of Sonatrach Member

Mr Mohamed Chawki RahalRepresentative of Sonatrach Member

Mr Abdelkrim LamouriEmployee representative Member

Mr Ali TouatiRepresentative of the Bank of Algeria – Member

Mr Youcef OurradiRepresentative of the Minister for HydrocarbonsMember

Mr Mohamed Bachir GhanemRepresentative of the Minister for HydrocarbonsMember

Mr Mohamed BenazzouzEmployee representative Member

Mr Nourredine BoutarfaAppointed for his oil industry experience – Member

THE EXECUTIVE COMMITTEE

8 / SONATRACH 2006


Mr Boumediene BelkacemVice-President Upstream

Mr Hocine ChekiredVice-PresidentPipeline Transportation

Mrs Malika BelkahlaExecutive Director,Human Resources

Mr Ali RezaïguiaExecutive Director,Finance

SONATRACH 2006 / 9

Miss Fatma Zohra BenoughlisExecutive Director, Strategy, Planning and Economy

Mr Mohamed SenhadjiExecutive Director,Central Services

Mr Madjid Ait AllakCentral HSE Manager(Health, Safety and the Environment)

Mr Abdelhafid FeghouliVice-President Downsteam

Mr Mohamed Chawki RahalVice-President Marketing

Mr Abdelmalek ZitouniGeneral Secretary

ORGANISATIONAL STRUCTURE *

10 / SONATRACH 2006

GENERAL SECRETARY

INTERNAL COMPANY SECURITY

STRATEGY, PLANNING AND ECONOMY

HUMAN RESOURCES

FINANCE

C O O R D I N A T I O N G R O U P D I R E C T O R I E S

* Organisational and functional structure of the Sonatrach Group

INTERNATIONAL ACTIVITIES

CENTRAL SERVICES

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Sonatrach International

Holding Corporation

Oil and Oil Industry Services Holding Company

UPSTREAM ACTIVITY

Sonatrach investment andEquity Holding Company

PIPELINE TRANSPORTATION ACTIVITY

SONATRACH 2006 / 11

PRINCIPAL OF CABINET

REVIEW & STEERING COMMITTEE

EXECUTIVE COMMITTEE

HEALT, SAFETY AND THE ENVIRONMENT

LEGAL

AUDIT

C E N T R A L D I R E C T O R I E S

TECHNICAL COORDINATIONAND DEVELOPMENT

Refining and Oil Chemistry Holding Company

DOWNSTREAM ACTIVITY

Sonatrach Oil Promotion Holding Company

MARKETING ACTIVITY

HIGHLIGHTS OF THE YEAR

12 / SONATRACH 2006

18 JANUARY 2006■ Signature of the directive on the safety of installations and workers Sonatrach signed on 18 January 2006, the general directive on the safety of installations and workers, a directive that is considered as a regulatory benchmark in industrial safety. It reflects the Group’s overall policy to set up a modern security system.

6 FEBRUARY 2006■ Sonatrach and Shell sign a memorandum of understandingThe purpose of the memorandum of under-standing (MOU) is to identify areas of coopera-tion in which the two companies intend to work together in Algeria and abroad. This includes sharing experience and expertise in Down-stream activities, studying the feasibility of the technical and commercial development and the construction of an LNG liquefaction complex, as well as creating a programme for developing performances and expanding Sonatrach’s LPG and LNG capacities.

25 MARCH 2006■ Signature of the directive on Sonatrach’s human resource policyThis directive gives priority to the following seven areas performance management, management planning, hiring, compensation, development of skills and training, professional careers and managerial communication. This directive is in line with Sonatrach’s wider ambition of upgrading the company’s human resource development and management pro-cesses, launched several years ago.

9 APRIL 2006■ Sonatrach and the Algerian Space Agency sign a cooperation agreement This cooperation agreement enables the use of space technologies and their applications in the Group’s development projects.

22 MAY 2006■ Sonatrach and Endesa sign a natural gas sale and purchase agreementSonatrach and the Spanish company Endesa have signed an agreement for the sale and purchase of natural gas. This agreement concerns a volume of 0.96 billion cm a year which will be supplied through Medgaz, a new undersea pipeline directly connecting Algeria to Spain. Note that this long term agreement is part of the goal to transport a volume of 8 billion cm as from the end of 2008 with the ambition of doubling the capacity of this gas pipeline in the last phase.

4 SEPTEMBER 2006 ■ Sonatrach and the Libyan National Oil Company sign the Alrar and Wafa agreementThe Alrar and Wafa agreement signed between Sonatrach and the Libyan National Oil Company concerns the technical study of border deposits in Alrar (Algeria) and in Wafa (Lybia). The reservoir engineering consultants, De Gloyer and Mac Nautighton were selected for the two-phase study aimed at determining the current state of the two border deposits.

SONATRACH 2006 / 13

7 OCTOBER 2006■ Inauguration of the SP2 pumping stationLocated 25 km to the North-West of the city of Laghouat, the SP2 pumping station is aimed at increasing the annual LPG transportation capacity of the Hassi R’Mel-Arzew pipeline from 6 to 9 million tonnes.

15 NOVEMBER 2006■ Sonatrach signs five natural gas sale/purchase agreements through the Galsi project with Edison, Enel, Hera, Ascopiave and WorldenergyThe five natural gas sale/purchase agreements, through the Galsi project, concern a volume of 2 Gcm/year with Edison, 2 Gcm/year with Enel, 1 Gcm/year with Hera, 0.5 Gcm/year with Ascopi-ave and 0.5 Gcm/year with Worldenergy.The sale/purchase agreements will help Sonatrach achieve its export goal of 85 Gcm/year during 2010 and are in line with the Group’s strategy to strengthen its position on the European natural gas market.

16 DECEMBER 2006■ Production begins at the In Salah gas deposit The BP, Sonatrach and Statoil consortium launched production at the In Salah gas deposit. The project, which will produce 9 billion cm of gas a year (25 million of cm/870 million cubic feet/day) and approximately 50-60,000 barrels/day of liquids, includes the development of four gas fields, a collection system and the construction of a gas processing facility.

11 DECEMBER 2006 ■ Successful commissioning of the Aliaga LNG reception terminal in the Izmir region of TurkeyFrom 4 December to 10 December 2006, the Algerian methane carrier, Larbi Ben Mhidi, unloaded a quantity of 124,300 cm of LNG carried from Béthioua (Arzew). This operation allowed the performance of the customary tests on all the terminal’s equipment and the launch of a commercial operation.

SONATRACH , A MAJOR

3rd natural gas exporterworldwide

1stgas companyin the Mediterranean region

1stoil and gascompany in Africa

Algeria’s natural gas reserves represent nearly 3% of total world reserves. As a pioneer in the LNG industry, Sonatrach has since its inception successfully cleared all major hurdles to develop its gas fields and maintain its leader position in the LNG production and marketing.

14 / SONATRACH 2006

NATURAL2ndLNG exporterworldwide

12th energy companyworldwide

SONATRACH , A MAJOR

SONATRACH 2006 / 15

GAS OPERATOR The world’s first natural gas liquefaction facility, the GL4Z (formerly, the Camel), was built in 1964 in the region of Arzew. Today, Sonatrach has 4 LNG facilities.

Its 7,459 km-long gas pipeline network includes two transcontinental gas pipelines:• Pedro Duran Farell (Algeria-Spain via Morocco).• Enrico Mattei (Algeria-Italy via Tunisia).

This network will expand to deliver gas to Europe after the completion of major gas pipeline projects such as Medgaz (to Spain), Galsi (to Italy via Sardinia) and the Trans Sahara Gas Pipeline (TSGP, which will link Nigeria to Europe via Niger and Algeria).

The group’s gas transportation system includes a fleet of 9 methane carriers. In 2007, Sonatrach took delivery of a methane carrier Medmax I (Mediterranean Maximum Size), named “Cheikh El Mokrani”, with a capacity of 75,500 cm. The group will receive its second carrier, Medmax II, “Cheikh Boumama”, in 2008. These acquisitions will help the group to supply distant/ remote markets such as America and Asia with gas. In addition, they will give Sonatrach the proprietary resources required to transport hydrocarbons, 35% of its exports by 2010 and 50% by 2015.

NATURAL GAS OPERATOR SONATRACH , A MAJOR

16 / SONATRACH 2006

RESOURCES> The Algerian mining industry is particularly rich in natural gas deposits. Nearly, 66% of the 80 billion cm of gas currently sold by Algeria comes from the gigantic Hassi R’Mel gas field.Several fields are currently mined with proprietary resources or in association, such as In Salah, Tin Fouyé Tabankort, In Aménas, Gassi Touil, Rhourde Nouss, Hamra and Alrar.

ENVIRONMENT> In order to participate in the global effort to protect the ozone layer and use natural resources sparingly, Sonatrach has been actively phasing out flaring on all its sites. Even though production volume has increased fourfold in the last 30 years, the ratio of flared associate gas over produced gas has tumbled from 80% in 1970 to 7% in 2005. We expect to totally phase out flaring by 2010. In addition, the association Sonatrach, BP and Statoil has initiated a procedure of CO2 re-injection into the In Saleh gas field.This is the largest of the only two such projects in the world.

SONATRACH 2006 / 17

INTERNATIONAL> Algerian gas fields provide a long-term, reliable supply source of gas with an export capacity of nearly 38 billion cm by gas pipeline and nearly 27 billion cm in liquefied form (LNG).

18 / SONATRACH 2006

THE UPSTREAM ACTIVITY comprises the different hydrocarbon exploration, operation and production services. These activities are carried out by Sonatrach alone or in association with other oil companies.However, most subsidiaries recorded significant growth of their revenues. The signature of numerous partnerships during the year and the success of several exploration missions indicate a rosy future for this activity.

UPSTREAMSONATRACH

SONATRACH 2006 / 19

UPSTREAM

NATURAL GAS> Out of the 17 discoveries made in 2006, gas discoveries revealed a volume of 44.95 million TOE. Combined with the boosted capacity of the large Hassi R’mel field, these discoveries further enhance the group’s strong gas production and export capacity.

20 / SONATRACH 2006

In 2006, the activity reported a production volume of 230 million TOE versus 232 million TOE in 2005. Numerous partnerships were signed during the year and the various successful exploration projects point towards a very positive outlook for the future.

UPSTREAM

PRODUCTION

61% NG

28% Crude oil

7% LNG

4% LPG

230 million TOEincluding Sonatrachin association

Structure of primaryproduction

Key indicators 2005 2006 Variance

Exploration

Metres drilled (M) 184,728 216,692 17%

Including associations (M) 90,897 123,886 36%

Wells drilled 64 77 22%

Including associations 32 48 50%

Development drilling

Sonatrach alone metres drilled (M) 265,698 279,718 5%

Associations (M) 195,514 282,632 44.5%

Production (106 TOE) 232 230 -1%

Financial indicators

Investments (109 AD) 207 285 36%

SONATRACH 2006 / 21

FIELDS AND PLANTS COMINGON STREAM■ Sonatrach alone • Bir Berkine and Bir Berkine North with a rated capacity of 25,000 barrels/day.

• Alrar Oil Ring.• Re-instrumentation of the 0 HRM (DCS MPPO) module.

■ Sonatrach in association • Touat with rated capacity of 12,500 barrels/day and beginning of oil shipment to the

Adrar refinery. • In Amenas with a rated capacity of 29.8 million Scm/day. • Acceptance of three new drilling rigs (NDIL).

SIGNED CONTRACTS ■ Sonatrach alone • Certification of reserves for all Sonatrach fields with DMN. • Entry into force of the FEED contract on the RN & R. Chouff development project. • Lease of six drilling rigs (four with NDIL and two with Parker). • Revamping of the CIS Hassi Messaoud crude desalting unit with KPS. • Boosting Hassi R’mel phase II with ABB/SARPI. • Award of the contract for the acquisition of the 3D seismic on the Hassi R’mel field

to BGP.

■ Sonatrach in association • Feed IED (Initial Engineering Design), on El merk. • OBE (Open book Engineering) with JGC, on Gassi Touil. • EPC with Technicas Reunidas/Spain, on RKF.

■ International contracts • Sonatrach International Petroleum Exploration & Production BVI (SIPEX) acquired,

in partnership with the Norwegian group Statoil, blocks 09 and 10 located inthe deep Egyptian offshore.

22 / SONATRACH 2006

UPSTREAM

EXPLORATION

17 OIL AND GAS DISCOVERIES

These discoveries are as follows:> Sonatrach alone: 9> In association: 8

9 oil discoveriesSonatrach alone: 6 / Sonatrach in association: 3

5 gas discoveries Sonatrach alone: 1 / Sonatrach in association: 4

1 for condensate gasSonatrach in association: 1

2 for oil and condensate gasSonatrach alone: 2

■ Discoveries by Sonatrach alone1. HGAS-1: oil/block 427/Amguid-Messaoud

basin/Hassi D’Zabat2. GLSW-1: oil/block 438c/Oued Mya basin/

El Mzaid3. AHMN-1: oil/block 405a/Berkine basin/

Menzel Ledjmet4. AHM-1: oil and condensate gas/405a block/

Berkine basin/Menzel Ledjmet5. WEMN-1: oil and condensate gas/405a

block/Berkine basin/Menzel Ledjmet6. AHMSW-1: gas/block 405a/Berkine basin/

Menzel Menzel7. EMLC-1: oil/block 405a/Berkine basin/

Menzel Ledjmet8. FDF-1: oil/block 402b/Berkine basin/

Rhourde Elouh Sif Fatima9. SFext-1: oil/block 402b - 402d/Berkine basin/

Rhourde Elouh Sif Fatima

■ Discoveries in association1. TEN-1: condensate gas/block 245/Illizi

basin/Gara Tasselit/Rosnef2. ISRS-1: gas/block 226-229b/Illizi basin/

Erg Issaouane/Medex3. SLI-1: gas/block 351c/Tindouf-Reggane-Sbaa

basin/Reggane Nord/Repsol4. MJB-3: gas/block 325a-329/Ahnet Gourara

basin/Timimoun/Total

5. KL-2: gas/block 351c/Tindouf basin-Reggane-Sbaa/Reggane Nord/Repsol

6. LES-3: oil/block 405a/Berkine basin/Ledjmet/FCP

7. GSM-1: oil/block 405b/Berkine basin/Ledjmet basin/FCP

8. BBKS-1: oil/block 404a/Berkine basin/Berkine Hassi/Anadarko

The (oil and gas) discoveries revealed a volume of 117,53 million TOE hydrocarbons (Proven and Probable).

■ Discovery of new reservesThe revealed reserves are mostly located in the Southwest and Southeast regions as follows:• Oil: 89.09 billion ST cm,• Gas: 48.14 billion ST cm.

OUGARTARIDGE

BOU BERNOUSSADDLE

E G L A B S H I E L D

MALI

TINDOUFBASIN

AZZENERIDGE

SBAASYNCLINE

TIMIMOUNBASIN

DJOUASADDLE

AHNETBASIN

IN SALAHREGGANEBASIN

ABADLABASIN

BENIABBES

SADDLE

BECHARMEHAREZ

DOME EAM

AZAA

SAD

DLE

ALLALDOME

IDJE

RA

NE

SPU

R

OUEDMYA

BASIN

MOUYDIRBASIN

AM

GU

ID S

PU

R

RIDGEHASSI MESSAOUD

DAHAR DOME

BERKINEBASIN

ILLIZIBASIN

TIHEM

BO

KA

AR

CH

SOUTH MOUYDIRHOMOCLINE

H O G G A R

TAMANRASSET

NIGER

LIBYA

TUN

ISIA

MAU

RIT

ANIA

SAD

R

BECHAR TROUGH

BENOUD TROUGH

OUEDNAMOUSDOME

DJORFASADDLE

TIL RHEMTDOME TOUGGOURT

SADDLE

MELRHIIR TROUGH

HODNA BASIN

ALGIERS

CHELIF BASIN

ORAN

MOROCCO

EL GOLÉA

AZZEL M

ATTI

SAD

DLE

Situation of 2006 discoveries 2006 discoveries, Sonatrach alone

2006 discoveries, Sonatrach in Association

Total discoveries since 1986 to 2006 Oil

Gas

1

3

1

-

3

1

-

18

7

3

86

-

2

272

21

1

18

SONATRACH 2006 / 23

UPSTREAM

DRILLING

24 / SONATRACH 2006

In 2006, 30 rigs were deployed to cope with the volume of drilling activity.

EXPLORATORY DRILLING77 drilled wells, totalling 216,692 metres of 1,166 m/month/rig.Sonatrach alone: 29 wells were drilled with a yield of 1,157 m/month/rig.In association: 48 wells were drilled with an average yield of 1,172 m/month/rig.

DEVELOPMENT DRILLING 208 drilled wells, with total length of 562,350 m.Sonatrach alone:92 wells drilled, totalling 279,718 m, including 44.3 horizontal drills with a total length of 158,435 m.In association:116 wells drilled, totalling 282,632 m.

SONATRACH 2006 / 25

73% NG

17% Crude oil

6% LNG

4% LGP

2006 production structure Sonatrach alone

52% Crude oil

41% NG

4% LNG

3% LPG

2006 production structure in association

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

05

0.1715

0.4625

0.486

0.896

6

1

7

1

8

1

81

7

2

7

2

7

2

6

Structural trend in LPG production■ Sonatrach alone ■ Association

UPSTREAM

PRODUCTION

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

34

4

350.718

33

4

33

6

32

8

32

9

30

10

29

17

29

26

29

30

29

34

29

34

Structural trend in crude oil productionMillions tonnes

■ Sonatrach alone ■ Association

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

2166 168

9170

11

171

12

173

15184

18

177

25

174

32

170

42

168

55

167

65

164

66

Structural trend in primary production structureMillions TOE

■ Sonatrach alone ■ Association

Total hydrocarbon production reached 229.8 million TOE, a production level representing a 98% achievement rate compared with 2006 objective.

Total production for Sonatrach represents 217.6 million TOE (including its parts in the associations), the associates’ production part comes to 12.1 millions TOE.

PRODUCTSIn 2006, crude oil and condensat production reached 79 million TOE. LPG products totalled 8.4 million tonnes, of which 2.09 million tonnes in partnership.

UPSTREAMPRODUCTION

26 / SONATRACH 2006

NATURAL GAS

With 150 billion cm, natural gas production in 2006 dipped slightly by 1.5% compared to 2005. Production in partnership contributed with a maximum of 25.4 billion cm.The Hassi R’Mel region, for gas operations, contributed with 63% to natural gas production with an achievement of 94 billion cm.

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Structural trend in natural gas production■ Sonatrach alone ■ Association

1141

118

5120

5

121

5

120

9128

12

129

12

128

12

125

13

124

20

124

28

122

28

SONATRACH 2006 / 27

UPSTREAM

INTERNATIONAL

■ Sonatrach International Petroleum Exploration & Production BVI(SIPEX) acquired, in partnership with the Norwegian group Statoil, blocks 09 and 10 located in the deep Egyptian offshore.

■ Finalising the TA1 in Mauritania.

■ Beginning of PAG-1001 PAG-1002 D assessment drills, on block 56 of Camisea.

■ Search for new investment opportunities in Latin America with a special focus on Venezuela.

■ Finalising the contracts in Mali concerning: • signature of the contract in February 2007 with AUREP for block 20, • acquisition of equity stake with ENI on 5 exploration blocks.

During fiscal 2006, new partnerships were made in connection with large-scale projects. Existing partnerships were reinforced.

> Turnover: AD 10,815 million

ENAGEONATIONAL GEOPHYSICS COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS SPP HOLDING

UPSTREAM

SUBSIDIARIES

Certification of the QHSE integrated system• ISO 9001-2000 for quality (maintenance),• ISO 14001-2004 for the environment,• OHSAS 18001-1999 for health and safety.

In 2006, ENAGEO reported revenues of nearly 11 billion dinars. The services carried out on behalf of Sonatrach associates generated revenues of nearly 73 million dollars.The creation and launch of a twelfth seismic team (in 2D) boosted business volume for seismic acquisition.

■ ProductionSeismic AcquisitionPhysical production of 116 month/team, with a record of 1,032,957 vibrated points on 6,448 km of seismic lines in 2D and 8,942 square kilometers in 3D seismic. The percentage of production completed for Sonatrach associates is 64 month/team, being 56%, for 678,822 vibrated points on 5,242 km in 2D and 3,921 square kilometers in 3D.

Seismic processingProcessing of 185,727 vibrated points.

Hydraulic drillingDrilling of 24 water wells, 10 land wells, 6 node wells and 7 top holes (fore holes for oil drilling, totalling 11,360 linear metres.

28 / SONATRACH 2006

Distributionof revenuesby activities

AD 9,928 millions Seismic acquisition

AD 362 millions Hydraulic drilling

AD 186 millions Topography

AD 163 millions Seismic processing

AD 90 millionsOther activities

AD 86 millionsSeismic wells

SONATRACH 2006 / 29


ENTPNATIONAL WELL ENGINEERING SERVICES COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS SPP HOLDING

ENTP is QHSE-certified. It continued to upgrade and revamp its production tool. In 2006, the company reaped the rewards of its efforts in the pursuit of excellence. ENTP has been striving for the creation of multiple partnerships on accessory services related to basic business areas such as repairs, certification, safety equipment, derricks and substructures, handling equipment, etc. The company is also involved in drilling contracts outside the country through a protocol agreement with the Saudi company, Sarcon. The highly encouraging physical and financial achievements in 2006 confirm that the company has adopted the right development approach and strategy.

Breakdown of the 255 wells completed in 2006

Description Year 2005 Year 2006 Variance 2006-2005

Development 65 75 10

Exploration 19 17 -2

Hydraulics 1 0 -1

Work-over 149 163 14

TOTAL 234 255 21

■ Health, Safety and EnvironmentSafeguarding the environment, preserving the health of employees and the safety of goods and people are key priorities for the company. ENTP continues to develop a “Health Safety Environment Management System” (HSE-MS) based on the same principle as quality assurance. This concept involves (is applied at) all levels of the company. Significant efforts have been made in HSE pursuant to the regulation and standards in force through the organisation of more training actions to raise employee awareness to HSE requirements.

Workplace accidentsThe implementation of the HSE management system was followed by awareness raising actions for all employees regarding the measures to take to prevent and reduce accidents at work. Emphasis was primarily placed on exemplary conduct and the field presence of supervisory staff, as well as the behaviour of operators in safety matters.

2006SIGNIFICANT EVENT

■ With 255 wells completed in 2006, in other words 21 more wells than in 2005, the company recorded an increase of 9%.

> Turnover: AD 8.5 billion

GCBNATIONAL CIVIL ENGINEERING AND CONSTRUCTION COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS SPP HOLDING

UPSTREAMSUBSIDIARIES

■ GCB activities include: • major excavation; • industrial civil engineering, pipeline and various structures; • roads and highways; • drilling platforms and access roads; • construction; • road works; • hydraulic structures; • the manufacture and assembly of metallic structures; • engineering.

SIGNIFICANT EVENTSThe 2006 financial year for GCB was marked by the major events below:■ Validation of the maintenance of the ISO 9001 V 2000 certificate while

extending its scope to the Northern Region Department and the Metallic Structure Unit announced by AFAQ-AFNOR Certification on 12 May 2006.

■ GCB had to prepare 27 technical and commercial bids in the area of hydrocarbons and public works, and 29 contracts and addenda have been signed totalling an amount of 6,666,769 thousand AD. The key bids include:

• creating a dual carriageway and upgrading the installations on the Sétif-El Ghourzi section on 108 km of the Alger-Constantine railway line for an amount of 1,821,456 thousand AD,

• surfacing the access tracks to the SH/DP installations SH/DP at the level of In Aménas for a total of 972 93 thousand AD,

• design and construction of access roads to the wells in the BBK and BBKN fields for an amount of AD 370,136 thousand.

■ GCB invested a total of AD 1,646,607 thousand.

■ The acquisition and implementation of a new software for human resource and payroll management.

30 / SONATRACH 2006

40.34% Roads

18.96% Excavation/GC

11.69% Platform

7.44% Excavation

6.54%Construction

6.30% Industrial civil engineering

3.56% GC for pipeline

2.04% Road works

1.68% Metallic frame

0.92%Design and monitoring

0.53% Other

Productionby activity

SONATRACH 2006 / 31

> Turnover: AD 11,471 billion

ENSPNATIONAL WELL SERVICES COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS SPP HOLDING

ENSP’s cover the services associated to the drilling and exploitation activities of oil producing wells.

In 2006, the group performed extremely well with rising revenues. In addition to a positive economic environment, the group’s results were driven by a supp growth in all its activities. The company has a solid financial structure, a suitable and simplified, reactive organisation that is close to its clients.

Changes in achievements by activity

Activities Measuring units 2004 2005 2006

Snubbing Hours 43,697 44,395 43,003

Wire line Hours 45,885 51,030 49,792

Well testing Days 6,763 6,272 6,290

Bhp Measure 826 963 1,625

Dst OPS 154 115 182

Nbr MDA 517 625 772

Cementing OPS 338 537 611

Casing wrench OPS 525 535 438

Pumping Days 1,412 1,490 1,755

Cladding Items 57,252 35,341 69,191

Drilling tools Items 58 120 97

Open hole OPS 98 115 186

Cased hole OPS 410 534 556

Stimulation OPS 143 228 195

Coiled tubing OPS 972 869 719

> Turnover: AD 16,565 million, + 26.73%

ENAFORNATIONAL DRILLING COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS SPP HOLDING

ENAFOR provides drilling and work-over services. 2006 was a very positive year, with 26.73% in revenues and 35% in operating income. During 2006, the company acquired 5 drilling rigs and accepted 4 drilling camps. The company deployed a communication network to a real-time integrated information system on work sites, headquarters and bases.

156 finished wells and 24 wells in process

■ 74 completed wells and 14 in process in 2006 with a length of 204,383 me-tres versus 186,410 metres in 2005 and an output of 1,072 m a month/rig versus 1,539 in 2005.

• 50 development rigs completed and 9 in process - Sonatrach alone: 28 completed drilling wells and 5 in process - In association: 22 drilling wells and 4 in process• 24 completed exploratory wells and 5 in process - Sonatrach alone: 7 completed drilling wells and 3 in process - In association: 17 drilling wells and 2 in process

• 82 completed workover and 10 in process - Sonatrach alone: 72 completed wells and 9 wells in process - In association: 10 completed wells and 1 well in process

Relocation of rigs built:158 DTM in 2006 (150 in 2005)

32 / SONATRACH 2006

UPSTREAMSUBSIDIARIES

SONATRACH 2006 / 33


ENGTPNATIONAL MAJOR OIL PROJECTS COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS SPP HOLDING

GTP ranks among the leading national construction companies and offers a complete range of services in the field of hydrocarbons and petrochemicals including engineering, the construction of production, transformation and distribution structures, the maintenance of equipment and installations.

The company focused on continuing its efforts and supporting strong, sustainable growth.

With 70% of business volume, Sonatrach remains the company’s leading client. However, in 2006, the company acquired 8 new projects for various clients including INITEC and GTFT.

2,291 Industrial maintenance

2,072 Civil engineering and construction

1,611Industrial assembly

868 Pipeline

Breakdownof activityby hours

34 / SONATRACH 2006

PIPELINE TRANSPORTATION is primarily responsible for carrying Sonatrach crude oil, gas and condensate to oil terminal ports, the Group’s storage facilities and export countries. Sonatrach has initiated the construction of 3 important gas pipelines: Medgaz, which links Algeria to Spain, Galsi, which links Algeria to Italy and the Transaharan gas pipeline (TSGP) which links Nigeria to Europe thru Niger and Algeria.

PIPELINETRANSPORTATION

SONATRACH

SONATRACH 2006 / 35

PIPELINETRANSPORTATION

NATURAL GAS>Sonatrach continues to expand its pipeline network which grew from 11,500 km in 1995 to 16,197 km in 2006, including 7,459 km of gas pipelines to enhance its gas export capacity.

PIPELINE TRANSPORT ATION

PRODUCTS CARRIED BY THE TRC TRANSPORT NETWORK

> 241 MTOE, all products included, were transported which represents a fall of 2% compared to 2005.

36 / SONATRACH 2006

46% Natural gas

41% Crude oil

8% Condensate

5% LPG

Breakdown of products transported

QUANTITIES DELIVERED

In 2006, the quantity of natural gas delivered reached 86.4 billion cm, distributed as follows.> 37.8 billion cm for export by gas pipelines> 30.3 billion cm for Downstream activity

(liquefaction and separation)> 18.3 billion cm on the national market

62.8 MT of crude oil were transported via the main network.A quantity of 18.6 MT of crude oil was delivered to refineries, which represents an increase of 4% over the year 2005.

The different oil terminal ports received a quantity of 59 MTOE of crude oil and condensate.

44% Exports

35% Downstream

21% National market

Natural gas deliveries

13.27 MT Skikda

2.70 MT Alger

2.66 MTArzew

Refinery supplies

SONATRACH 2006 / 37


ACHIEVEMENTS AND PROJECTS

NATIONAL

The six major projects below were commissioned in 2006:• SPM Bejaia-Arzew-Skikda,• GEM Phase 1(PC1-PC3) looping,• Beni Mansour SBM station: OG1 20”, Beni Mansour,

Alger,• revamping of the OB1 22”/24” oil pipeline on 17 km,• revamping of the OH4 30” crude oil pipeline from Hassi

Berkine to Haoud El Hamra,• SP2 Laghaout GPL/LZ124 station, Hassi R’mel, Arzew.

■ NK1 oil pipeline project (Haoud El Hamra Skikda)Signature of a contract between Sonatrach and the Mannesman-Umran-Noksel consortium for the supply of 665 km of 30-inch tubes. The tubes will carry supplies to the future Skikda condensate refinery and supply condensates to high sea loading buoys.

■ Construction project for 6 storage tanks(Haoud El Hamra)Signature of a contract between Sonatrach and the Algerian-French consortium Batenco Ouest-Secomoc to expand and strengthen the tank farm for the construction of 6 new tanks with unit capacities of 50,000 cm in the transport region of Haoud El Hamra.

38 / SONATRACH 2006

INTERNATIONAL■ MEDGAZ Project

Location: Algeria/SpainGoal: to export 8 billion cm/year to Spain

Offshore descriptionDeparture Terminal: Beni Saf (Algeria) Arrival Terminal: Almeria (Spain)Length (offshore): 200 kmDiameter: 24”Maximum depth: 2,160 mCapacity: 8 billion cm

Onshore descriptionPhase 2: Souguer-Arzew sectionDiameter: 48”Length: 218 kmGoal: carry supplies to the future LNG and LTG plants in Arzez

Major achievements Launching of the work for gas pipeline GZ4 (48")• The project received priority status from

the Spanish government and was classi-fied as an “A” category project.

• Signature of agreements for the withdraw-al of BP and Total and acquisition of their equities.

• Signature of a new shareholders’ agree-ment and approval of the final investment.

• Award of EPC contracts (Mitsui and Sumi-tomo/tubes supply, Rolls Royce/turbo compressors, SAIPEM SPA/offshore line installation, Intec PT-Technicas Reunidas-AMEC SPIE/station Beni Safet Terminal Almeria).

PIPELINE TRANSPORT ATIONACHIEVEMENTS AND PROJECTS

HASSI R'MEL

SAHARIAN ATLAS

ALMERIA

SPAIN

SEA OF ALBORAN

ORANALGIERS

ALGERIA

MOROCCO

Shareholding

26.32% Sonatrach

20% Cepsa

20% Iberdrola

12% GDF

12% Endesa

SONATRACH 2006 / 39

■ GALSI Project

Location: Algeria/ItalyGoal: to export 8 billion cm/yearto Italy through Sardinia

DescriptionEl Kala-Cagliari (offshore)Length: 280 kmDiameter: 24”Maximum depth: 2,840 m

Cagliari-Olbia (onshore)Length: 300 kmDiameter: 42”

Olbia-Carbonifera (offshore)Length: 270 kmDiameter: 22” Maximum depth: 900 m

Major achievements • Launch of the bidding procedure for the

marketing of gas through GALSI. Volumes granted: Sonatrach: 2 BCM, Edison: 2 BCM, Enel: 2 BCM, Hera: 1 BCM, Ascopiave: 0.5 BCM, World Energy: 0.5 BCM.• Set up of the intergovernmental agreement.• Launch of the preparation of technical stud-

ies and draft contracts (ATI Progenisa, On-shoreToscane/Apollonia, Pre FEED/PKenny-Sofregaz).

SICILYCORSICA

ALGERIATUNISIA

ITALY

ROMA

FRANCE

GULF ARANCI

LEGHORN

PIOMBINO

EL KALA

OPORTOBOOT

CAGLIARI

SARDINIA

Shareholding

36% Sonatrach

18%Edison

13.5% Enel

13.5%Wintershall

9% Hera

5% Sfirs

5% Progemisa

40 / SONATRACH 2006

■ TSGP Project

Location: Nigeria-Algeria via NigerGoal: promote pan African economic development and the export of 20 to 30 billion cm/ year from Nigeria to Europe via Algeria

DescriptifDeparture Terminal: Warri (Nigeria)Arrival Terminal: Beni Saf or El Kala (Algeria)Length: 4,188 km including 2,310 km on Algerian territory, 840 km on Niger territory, 1,037 km on Nigerian territory.Diameter: 48” Pressure: 1,000 bars

Major achievements • The results of the feasibility study con-

firmed the project’s technical and eco-nomic viability.

• Preparation by the Preliminary Study Team of a memorandum on the proce-dure to implement to prepare for the “post study/project definition” stage.

• Presentation, by the consultant, of the project’s risk analysis (gas reserves, cred-ibility of clients, regulatory and financial matters, market risk, safety).

Shareholding

50% Sonatrach

50% NNPC

> Future 25%/25%

ALGERIA

MOROCCO

MALI

BURKINA

NIGER

NIGERIA

WARRITUNISIA

BENI SAFORAN

ALGIERS

EL KALA

RASD

MAURITANIA

LIBYA

HASSI R’MEL

THE SAHARA

PIPELINE TRANSPORT ATIONACHIEVEMENTS AND PROJECTS

SONATRACH 2006 / 41


HSE ACTIVITIES

In 2006, HSE issues were of prime importance in the activity’s development plan. Pipeline Transportation set itself the primary objective of upgrading Sonatrach industrial assets and practices to meet the new regulatory requirements on safety, health and environment.

Action plans initiated in 2005 began to materialize in 2006, the key ones included:• the implementation of new procedures for production facilities (storage

tanks and stations), in particular by restricting access to risky areas;• the acquisition of the appropriate prevention and intervention equipment:

several agreements were signed for the acquisition of safety equipment, rolling stock and individual protection equipment;

• launch of an internal audit programme at the level of industrial installa-tions by the performance of danger studies and environmental audits;

• the implementation of a training program and the upgrading of HSE em-ployees, 1,350 participants were registered in 2006;

• launch of the Technological Security Systems project, aimed at preventing incidents linked to the security of assets. The project involves installing technological security systems comprised of video cameras, perimetric surveillance and intruder alert and access control devices on the activity’s sensitive and neuralgic sites and infrastructures.

42 / SONATRACH 2006

PIPELINE TRANSPORT ATIONSUBSIDIARIES

ENACNATIONAL PIPELINE COMPANYENAC IS 100% OWNED BY SONATRACH, THROUGH ITS SPP HOLDING

> Turnover: KDA 1,334,000, +8%

In 2006, the company installed 106,181 linear metres (ml) of pipelines, all diameters included. This slightly lower performance is linked to the limited size of projects throughout the country. In addition, certain projects such as BMR, Ouneza and Relizane just began in the third quarter 2006.

Lowering-in 2006In linear meter

■ Planning ■ Execution

OB1 OB2 Slim Mag 2 Mag 1 Serai Chif Mas A. You Dje Mes Gue SS DJaa Ouen Reli

18,000

16,000

14,000

0

2,000

4,000

6,000

8,000

10,000

12,000

2006SIGNIFICANT EVENTS

■ Commissioning of the OH4 looping project.

■ Signature of the corporate collective agreement with labour representatives.

■ Set up of a new wage grid with retroactive effect to January 2006 and 30% increase.

■ Commissioning of the OH4 project (Sonatrach-TRC).

■ Obtaining a business portfolio worth KAD 6,600,000 with Sonelgaz, GRTG.

SONATRACH 2006 / 43

SARPIALGERIAN INDUSTRIAL PROJECTS CONSTRUCTION COMPANYTHE COMPANY IS 50% OWNED BY SONATRACH, THROUGH ITS SIP HOLDING

SARPI’s main business involves the construction and revamping of transportation pipelines,pipes and pipelines.

The company’s other activities include the assembly of compression sta-tions and oil and gas processing units, industrial wastewater treatment and the construction and revamping of deballasting stations, hydrocarbon tank farms, compression stations and other installations in the energy field.

2006 was a remarkable year as the company outperformed its annual objective and achieved revenues representing 127% of that objective. It also recorded an unprecedented backlog thanks to two new major proj-ects, the NK1 pumping stations and boosting of the Hassi R’Mel facility.


■ Signature of two major contracts, to implement phase 2 of the Hassi R’Mel boosting and lot 3 in the construction of the NK1, HEH, Biskra, Skikda pumping stations.

■ Other contracts won included: Flow Lines ACR 113, won from Amerada Hess and El Gassi’s pipelines & Manihold Flowlines project.

■ Commissioning of the existing compression station of Rhourd Nouss by Sonatrach transport.

■ Commissioning of two deoiling stations in Hassi R’Mel.

■ Supply and installation of a desalination network in Hassi R’Mel.

■ Attribution of a distinction by Sonahess for a year of work without any physical injuries and technical incident causing delays.

44 / SONATRACH 2006

Sonatrach’s DOWNSTREAM OPERATIONS involve the five business areas of natural gas liquefaction, refining, LPG separation, petrochemicals and industrial gas production, mainly helium and nitrogen.Business was satisfactory overall for all branches and the subsidiaries reported excellent results.Significant projects are under development being developed in the liquefaction, aluminum production and seawater desalination activities. The refining business is undergoing an intensive upgrade.

DOWNSTREAMSONATRACH

SONATRACH 2006 / 45

NATURAL GAS> With 04 natural gas liquefaction facilities, a capacity of 21 million tonnes a year, Sonatrach operates by his own the gas fields of Hassi R’mel, Rhourde Nouss and Alrar. It also operates other gas fields in In Salah, In Aménas, Ohanet, and Tin Fouyé Tabankort under partnerships with international companies.The group’s liquefaction capacities will be further enhanced by the Gassi Touil LNG integrated gas project and the jointly-managed Tinhert LTG integrated gas project.

DOWNSTREAM

NATURAL GAS LIQUEFACTION AND LPG SEPARATION

46 / SONATRACH 2006

NATURAL GAS LIQUEFACTION BY COMPLEX

■ The GL1Z complexThis complex produced 15,835 cm representing 90% of the set objective.


■ The GL1K complexThis complex produced 5,478 cm representing 84% of the set objective.


LIQUEFIED NATURAL GAS PRODUCTION The production of LNG complexes reached 39 million cm LNG during 2006, which represents 89% of the 2006 annual objective.

The total production of all products combined of the LNG and LPG complexes represents the equivalent of 32.7 million TOE. This production is generated by four natural gas liquefaction complexes with a capacity of 43,289 cm.

SONATRACH 2006 / 47

Progress in liquefied natural gas production by complex

■ Signature of an EPC contract with IHI-ITOCHU, a Japanese company concerning the securing and reliability of the GP2Z complex.

■ Signature of the Articles of Association ofEl Andalous LNG SPA SPA in the context of the Gassi Touil integrated project, the company will be located in the Arzew industrial zone. It will handle natural gas liquefaction.

■ 17 and 18 April 2006: public opening of the request for technical proposals technical tenders for the four petrochemical projects (Fuel oil enhancement complex projects in Skikda, steam cracking of Naphta in Skikda, PTA/PET in Skikda, propane deshydrogenation in Arzew) and crude oil refinery in Tiaret).

■ 25 May 2006: production of the first drop of helium, from the Skikda helium facility plant.

SIGNIFICANT EVENTS

■ Actual 2005

■ Forecast 2006

■ Actual 2006

20,000

15,000

10,000

5,000

0

GL1K GL4ZGL2ZGL1Z

Gasoline production amounted to 284 10³ tonnes, i.e. 89% of the annual objectives. It breaks down as follows:• GL1Z: 96 103 tonnes,• GL2Z: 136 103 tonnes,• GL1K: 52 103 tonnes.

Ethane production reached 120 10³ tonnes, i.e. 76% of the annual objectives.The production of iso butane is 953 tonnes and the LPG produced by the GL2Z and GL1K complexes to 484 10³ tonnes.

PRODUCTION OF GASOLINE, ETHANE AND ISOBUTANE

48 / SONATRACH 2006

Sonatrach operates two LPG separation facilities plants in Arzew, with a capacity of 8.6 million tonnes a year.LPG production from the GP1Z and GP2Z complexes generated 7,672 million MT, representing 88% completion of the initial forecasts.

LPG SEPARATION

■ Actual 2005

■ Forecast 2006

■ Actual 2006

Liquefied Petroleum gas production by LPG complex

8,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

GP2ZGP1Z

DOWNSTREAMNATURAL GAS LIQUEFACTION AND LPG SEPARATION

DOWNSTREAM

NATIONAL AND INTERNATIONAL DEVELOPMENT PROJECTS

SONATRACH 2006 / 49

PARTNERSHIP PROJECTS IN ALGERIA

Numerous projects are currently underway such as:• the Helium project in Skikda,• the LNG train proiect of Gassi Touil,• the Ethane steam cracking project in Arzew,• the Methanol complex in Arzew,• the Ammonia derivative complex of Béni Saf,• the new Adrar refinery project and• the Tiaret refinery project.

INTERNATIONAL PARTNERSHIP PROJECT

■ Reganosa Concerning the Reganosa terminal construction project, the EPC contract had physically progressed at the end of December 2006 by 88.17%.

50 / SONATRACH 2006

> Volume: 18,987,753 tonnes, + 4%> Turnover: AD 108 billion, + 7%


■ Launch of upgrade projects and increase of site capacities on the basis of 9 FEED detailed studies.

■ Signature of license agreements with Axens, UOP and GTC.

■ Continuation of the EPC project to upgrade the Arzew refinery.

■ Signature of a contract concerning “remote monitoring systems, access control and movement of people” with Siemens for the Arzew, Alger Skikda refineries as well as the Arzew and Algiers petroleum ports.

■ Capital increase from 12 billion dinars to 50 billion dinars.

NAFTECNATIONAL REFINERY COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS RCH HOLDING

DOWNSTREAM

SUBSIDIARIES

NAFTEC carries out its refinery activity on four production sites: Algiers, Skikda, Arzew and Hassi Messaoud. These complexes represent a total capacity of 24 million tonnes per year.NAFTEC reported significant business growth, in volume and value, during the fiscal year 2006, and a positive net income of AD 8.010 billion (+22%). The company continued a sustained investment policy to refurbish and upgrade its facilities and their equipment.

■ ProductionIn terms of volume production increased to 18,987,753 tonnes, representing 97% of forecasts and 104% of 2005 achievements.The company recorded excellent performances in the production of premium petrol and unleaded petrol.

Breakdown of production by product

Products Actual 2006 (tonnes) % 2005

LPG 494,672 99

Normal petrol 1,293,373 96

Premium petrol 548,891 123

Unleaded petrol 474,881 190

Naphta 2,989,869 93

Kerosene 954,030 89

Diesel fuel 6,371,096 107

Low sulphur fuel oil 5,244,487 107

White spirit 15,614 122

High sulphur fuel oil 95,837 98

Bitumens 269,145 106

Lubricants 147,614 92

Aromatics 86,703 264

TOTAL 18,987,753 104

SONATRACH 2006 / 51

■ Marketing

> Turnover: AD 108 billion, +7%The global 2006 turnover, all products combined, amounted to AD 108 billion, representing a 7% growth,Overall sales for the fiscal year 2006 reached approximately 19 million tonnes, representing +4% growth compared to 2005. Quantities sold on the domestic market represent 51% of total lifting, i.e. 9.6 million tonnes, a rise of 6% compared to 2005. Sonatrach’s liftings totalled 9.4 million tonnes, i.e. 102% of 2005 liftings.

Breakdown of the volume of crude oil processed by refinery

Facilities Actual 2006 (tonnes) % 2005

RA1K 13,254,775 101

RA1Z 2,665,268 84

RA1G 2,704,324 182

Sub-total Refineries in the North 18,947,544 104

RHM 1,127,400 93

TOTAL 19,751,767 104

Description Actual 2006 (tonnes) % 2005 % 2004

RA1K 7,479,514 96 91

RA1Z 758,219 69 84

RA1G 1,141,276 297 198

TOTAL 9,349,009 102 97

External marketThe Turnover reached AD 8.6 billion, repre-senting a 16% growth compared to 2005 fiscal year. This performance can be explained by the upward adjustment of processing compensa-tion in the second half of 2006.

Description Actual 2006 (tonnes) % 2005 % 2004

RA1K 5,602,661 106 111

RA1Z 1,967,312 89 97

RA1G 1,508,672 148 143

Sub-total Refineries in the North

9,078,645 107 112

RHM 510,692 101 107

TOTAL 9,589,338 106 112

Domestic marketNAFTEC has fully met domestic market demand in petroleum products, with 6% growth compared to 2005. The turnover achieved totalled AD 99.7 billion: a 7% rise has been recorded due to the increase in the price of lubricants.The revenues generated with private clients totalled AD 8.4 billion, representing 9.18% of domestic market revenues. For lubricants alone, they totalled AD 3.1 billion, representing 37% of the total revenues earned with these private clients.

52 / SONATRACH 2006

DOWNSTREAMSUBSIDIARIES

> Volume: 240,338 tonnes> Turnover: AD 13.4 billion, +100%

ENIP NATIONAL PETROCHEMICALS COMPANYSONATRACH 100% OWNED SUBSIDIARY, THROUGH ITS RCH HOLDING

The company operates on two sites in Algeria: Skikda (CP&K), site dedicated to ethylene and its derivatives, and Arzew.ENIP is in charge of the group’s petrochemical activities using natural gas as a raw material. Financial year 2006 was exceptionally dynamic for the company which recorded its best performance since 2000 driven by the buoyant demand for clean energy.

■ ProductionThe results are characterised by a clear upswing in physical terms. Overall production totalled 204,535 tonnes, representing 114% of the achievements regardless of the ethane shortage and the unavailability of kilns and compressors for GLK1.

SONATRACH 2006 / 53

3,4573,682

Methanol

103,250

94,200

Resines

CP1.Z: production in TM■ 2005 ■ 2006

2006 production

Annual Design Reviewactual 2005

Situation of 2006

Actual2006

T.U.C. T.R.O.

CP1.K Ethylene 120,000 38,196 70,470 59% 94%

LD Polyethylene 48,000 16,906 3,680 8% 18%

PVC 35,000 6,600 7,247 21% 67%

Liquid caustic soda 41,000 11,407 9,506 23% 61%

Hypochlorite 4,000 6,138 5,004 125% 38%

HCL 11,000 2,183 1,921 17% 26%

Sub-total 259,000 81,430 97,828 38% 69%

CP1.Z Methanol 113,000 94,200 103,250 91% 94%

Resines 12,600 3,682 3,457 27% 79%

Sub-total 125,600 97,882 106,707 85% 93%

TOTAL 384,600 179,312 204,535 53% 80%

CP1.K: production in TM

Ethylene LDPolyethylene

PVC Liquid causticsoda

Hypochlorite HCL

38,196

6,600

11,407

5,004 2,183

16,906

70,470

3,6807,247

9,506

6,1381,921

■ 2005 ■ 2006

■ MarketingThe recorded turnover on domestic and external markets reached AD 13.4 billion, for a production of 240,338 metric tons. This performance corresponds to 97% of the objectives in value and twice the revenues earned in 2005.Exports amounted to AD 2.7 billion (USD 39 million). They represent 146% of objectives (in value) and 125% of 2005 achievements for basically the same quantity as 2005.

Total sales (value exc. VAT)UNIT: AD 103

Forecastsfor 2006

Reviewactual 2005

Situation for the year 2006

Actual2006

% Forecasts

Domestic market 11,957,886 4,465,351 10,742,958 90%

ENIP products 4,978,086 1,721,096 5,706,838 115%

CP1.K 4,901,320 1,627,123 5,600,806 114%

CP1.Z 76,766 93,973 106,032 138%

HD Polyethelyne (polymed)

2,772,000 425,989 2,668,221 96%

Imports 4,207,800 2,318,266 2,367,899 56%

External market 1,817,540 2,109,830 2,651,096 146%

CP1.K 0 529,685 303,415 -

CP1.Z 1,817,540 1,580,145 2,347,681 129%

TOTAL 13,775,426 6,575,181 13,394,054 97%

54 / SONATRACH 2006


Total sales (quantities)UNIT: TM

Forecasts forthe year 2006

Reviewactual 2005

Situation for the year 2006

Actual2006

% Forecast

Domestic market 187,270 68,545 138,934 74%

ENIP products 98,270 37,251 86,723 88%

CP1.K 95,100 33,579 82,860 87%

CP1.Z 3,170 3,672 3,863 122%

HD Polyethelyne (polymed)

36,000 5,148 27,572 77%

Imports 53,000 26,146 24,639 46%

External market 106,630 101,392 101,404 95%

CP1.K 0 8,157 4,300 -

CP1.Z 106,630 93,235 97,104 91%

TOTAL 293,900 169,937 240,338 82%

2005-2006 achievements (TM) domestic market

CP1.K CP1.Z

33,579

82,860

3,8633,672

Polymed

27,572

5,148

Import

24,63926,146

2005-2006 achievements (TM) external market

97,10493,235

CP1.K

4,3008,157

CP1.Z

■ 2005 ■ 2006 ■ 2005 ■ 2006

SONATRACH 2006 / 55

56 / SONATRACH 2006

> Tunrover: 1,943,000 KAD

SOMIZARZEW INDUSTRIAL MAINTENANCE COMPANY

85% rate of achievement in relation to targeted objective 2% variation rate compared to 2005. Income for the year totalled 224,000 KAD, representing a variation of 238%.

> Tunrover: 1,634,000 KAD

SOMIKSKIKDA INDUSTRIAL MAINTENANCE COMPANY

The company’s turnover grew sharply, representing 202% for the fiscal year 2005. 25% of revenues were earned outside Skikda. The gross income for the year exceeded forecasts with KAD167,000.

> Quantities soldHelium: 527 million cubic feetLiquid nitrogen: 8.6 million litresGaseous nitrogen: 12 million cm

HELIOSHELIOS IS A JOINT VENTURE LIMITED BY SHARES AND OWNED 51% BY SONATRACH AND 49% BY HELAP (A FRENCH COMPANY OWNED 50-50 BY AIR-LIQUIDE AND AIR PRODUCTS)

HELIOS extracted then liquefied the helium contained in the gas produced from the GL2Z natural gas complex. The company also uses flash gas to produces nitrogen in its Bethouia plant.The Bethouia plant has two liquefaction trains for an annual capacity of 600 million cubic feet of helium and 33,000 tonnes of nitrogen.The scheduled production stoppage for a period of two months disrupted the performance of the plant which nevertheless registered a daily production record in 2006.A large proportion of the helium produced is exported to Europe, as HELIOS is the primary supplier of helium to that market. The entire nitrogen production is entirely delivered to the COGIZ plant.

> TurnoverAD 1,833 millionUSD 25.3 million


SONATRACH 2006 / 57

> Turnover: 647,000 KAD

SOTRAZARZEW TRANSPORTATION COMPANYSOTRAZ IS 67% OWNED BY SONATRACH, THROUGH ITS RCH HOLDING

The company is specialised in Personnel transportation. It provides transportation for 58% of Arzew industrial zone's personnel and 20% of Skikda industrial zone’s personnel

> Turnover: 45,000 KAD

HELISON

The company reported an achievement rate of 8% in relation to the objective.

> Turnover: 1,107,000 KAD

EGZIK

The company posted an achievement rate of 103% in relation to the objec-tive and 3% change compared to 2005.Income for the year totalled 11,000 KAD, representing a decline.

> Turnover: 1,593,000 KAD

EGZIA

The company posted an achievement rate of 98% in relation to the objective and a variation rate of 28% in relation to 2005.Income for the year totalled 315,000 KAD, representing a variation of 67%.

58 / SONATRACH 2006

MARKETINGThe economic situation in 2006 was particularly favourable for exports. The growth of emerging countries, especially that of China (+7.4%), was a significant driver for petroleum demand. For Sonatrach, the growth occurred throughout all of its operational segments, and in particular for exports with a breaking record turnover of 53.6 billion USD, representing +17% growth in 2005.Sonatrach sold 171 million TOE of liquid and gaseous hydrocarbons of which 35 million TOEfor the domestic market.

MARKETINGSONATRACH

SONATRACH 2006 / 59

NATURAL GAS> Significant agreements were signed to develop gas sales to Europe and the United States. Two major international agreements underscored Sonatrach’s stronger position in downstream gas. First the reservation of nearly 5 billion cm of natural gas capacity in the Isle of Grain terminal on the British market for 2008, and the signature of a contract in 2006 with Gaz de France, to reserve 1 billion cm capacity in the Montoir regasification terminal in Brittany (France).

60 / SONATRACH 2006

MARKETING

MAIN AGGREGATES

Actual 2005 Actual 2006 Change 2006/2005

Volumes marketed 106 TOE 175.72 171.48 -2%

- Exports 141.31 136.29 -4%

- National market 34.41 35.18 2%

Total revenues 109 AD 3,469.26 4,018.35 16%

- Exports 3,353.40 3,891.33 16%

- National market 115.86 127.02 10%

Export revenues 109 USD 45.72 53.56 17%

Added to a growth generated by a rise in global consumption, the Group’s performance was also boosted by various projects launched or carried out during the year such as:

• the signature of a contract for reserving regasification capacity on the Montoir de Bretagne (France) terminal effective as from 2010 for a period of 10 years. Sonatrach will supply approximately 1 billion cm under this agreement,

• the implementation of the final investment decision for the Medgaz project which works will start in 2007 with commissioning scheduled for 2009 (capa-city of 8 Gcm/year).


SONATRACH 2006 / 61

MARKETING REPORT

Actual 2005 Actual 2006

EXPORTS 103 TOE 141,312 136,293

- Crude oil 103 MT 44,981 43,954

- Condensates 103 MT 13,811 13,364

- Refinery products 103 MT 9,535 9,647

- LPG 103 MT 7,482 7,010

- NG 106 CM 39,829 37,822

- LNG 103 CM 40,728 38,748

Liftings by associates included


SALES TO THE DOMESTIC MARKET 103 TOE 34,407 35,183

- Naftec crude oil 103 MT 9,271 9,769

- Ferphos crude oil 103 MT – –

- Crude oil – Sonatrach units 103 MT 14 14

- Condensates – Sonatrach units 103 MT 17 20

- LPG 103 MT 1,450 1,330

- Ethane 103 MT 72 120

- NG 106 CM 18,441 18,825

- NG – Sonatrach units 106 CM 5,856 5,687

- Charging gas 106 CM – 15

- Bitumens* 103 MT 352 480

TOTAL 103 TOE 175,719 171,476

*of which imports: 152,000 MT in 2005 and 213,000 MT in 2006.

62 / SONATRACH 2006

MARKETINGMAIN AGGREGATES

EXPORTS

Liquid hydrocarbons> Volumes exported: 69.45 million TOE> Turnover: USD 35 billion

Despite a slight decline in terms of volume revenues from exported hydrocarbons are rising by 17%.Associates lifting on Crude oil and condensate reached 9.31 million TOE, or 16% in volume for a turnover of USD 4.8 billion, representing 16% of total revenues and 15% growth compared to 2005.

2006 Exports report

Products (103 MT) Actual 2006 Actual rate Actual 2005

Crude oil 43,954 98 44,981

Condensate 13,364 93 13,811

Refinery products 9,647 89 9,535

TOTAL (103 TOE) 69,453 96 70,855

TOTAL (106 USD) 34,711 29,574

■ Crude oilCrude oil exports dipped slightly (-2%) with 43.95 million MT following the sharp growth of the previous year. Turnover generated totalled USD 22.7 billion, marking a 17% increase linked to an increase in oil prices and Sahara Blend premiums.

■ Condensates> Volumes exported: 13.36 million MT > Turnover: USD 7.3 billion

Despite a slight decline in volume, the turnover generated from condensate exports reached USD 7.3 billion, i.e. USD +4.9 billion with regards to the forecasts and nearly one more USD 1 billion during 2005. Exports to the American market accounted for 52% (86% of which to the United States and 14% to South America) versus 48% to Europe.

60% America

34%Europe

6% Asia

Breakdownof crude oilvolume in 2006


■ Agreement for the creation of a strategic alliance in partnership with the Korean company, KNOC.

■ Renewal of contract for an additional year with Valero, Total, Shell, Petrogral and Petroplus.

■ Increase of storage capacities in Korea.

SONATRACH 2006 / 63

■ Refinery products> Volumes exported: 9.6 million MT> Turnover: USD 4.8 billion

The export volume of refinery products rose by 113,000 tonnes compared to the previous year and the corresponding turnover surged by 21%. 2006 was characterized by a drop in volumes exported to the United States to the benefit of an increase in volumes to Asia, representing 11% of total export volumes in 2006 versus 4% in 2005.

Breakdown of exported refinery productsUnit: 103 MT


Petrols 77 357

Naphta 3,289 3,075

Light Naphta (C5+) 285 235

Diesel fuel 199 159

Jet kerosene 688 494

LSC fuel oil 4,882 5,133

HSC fuel oil 98 108

Aromatics 16 86

TOTAL 9,535 9,647

NaphtaNaphta exports (including C5+ light naphta) represent a total volume of 3.3 million MT for a turnover of USD 1.8 billion, up by 11% compared to the previous year.

DistillatesThe total volume of exported distillates dropped sharply to 653,000 MT (USD 422 million), due to the significant domestic consumption. The volume of exported fuel represents 5 million tonnes MT, i.e. +5% for turnover that increased by 27%, i.e. USD 2.2 billion.

AromaticsIn 2006, the total volume of 86,000 MT of aromatics which was exported recorded a sharp increase compared to 2005.

64 / SONATRACH 2006

Gaseous hydrocarbons> Volumes exported: 67 million TOE> Turnover: USD 18.8 billion, + 17%

Turnover from gaseous hydrocarbon exports reached a record level thanks to a constantly positive economic situation in terms of market price, combined with a price increase in long-term contracts, very high spot prices together with favourable prices on the US market especially for LPG.

■ NG – LNG

Natural gas The volume of NG exports dropped slightly to 37.8 billion cm. However, revenues increased significantly thanks to the higher average price of contracts.In 2006, marketing activity was marked by the creation of two subsidiaries, Sonatrach Gaz Commercializadora in Spain and Sonatrach Gaz Italia in Italy. Natural gas sales/purchase contracts were signed, with Edison (2 Gcm/year), World Energy (0.45 Gcm/year) through the first phase of the TTPC extension. A natural gas sales/purchase contract was also signed with Sonatrading, for the supply of natural gas through the second phase of the TTPC extension. This contract will be subsequently assigned to Sonatrach Gas Italia.

Liquefied natural gas LNG quantities exported in 2006 reached 38.7 million cm.LNG spot sales on the Italian, Spanish and Asian markets totalled roughly 962,000 cm of LNG. Significant agreements were signed to deve-lop gas sales for European and US markets and reinforcing Sonatrach's position in down-stream gas operations abroad. They include

the signature of a cooperation agreement for gas operations in Russia, Algeria and in third party countries between Sonatrach and Gaz-prom and the signature of a reservation agree-ment for a period of 10 years, for regasification capacity of 1 Gcm/year on the Montoir terminal in Brittany, France.Sonatrach sold 2.9 million cm of LNG on the British market in the context of the Isle of Grain project.

■ LPGLPG exports are characterised by a global volume of 7 million MT of which 469,000 MT belonging to associates. These export volumes dropped 27% compared to 2005 due to a number of factors such as sluggish demand for butane in particular, a mild winter in the United States and the postponed commissioning of the In Amenas plant.Two new LPG contracts were signed with Lyondell and Salbatring to supply LPG to the French and Eastern European markets. Several contracts with traditional clients were also renewed.

MARKETINGMAIN AGGREGATES

SONATRACH 2006 / 65

DOMESTIC MARKET

> Sales of petroleum and gaseous products35 million TOE (including bitumen)

AD 127 billion

> LPG sales (not including those from refineries)

1.3 million MT

> Sale of natural gas 24.5 billion cmAD 27.3 billion

Sales of petroleum and gaseous products on the domestic market recorded approximately 2% growth. Sonelgaz remains the predominant market player with 69% of market share in volume.2006 natural gas sales are compliant with forecasts while LPG sales shrank slightly due to the mild winter and the increasingly important penetration of natural gas in the Hauts Plateaux.The year was marked by the start up of ENIP’s CP1K unit, the operation and gas transportation of the Arzew, Sidi Bel Abbès and Tlemcen LPG transportation pipeline, the renewal of LPG purchase and sale contracts with private operators such as Petrofina, Ouestgaz, STPP and SARG. Three new bitumen sale contracts were also signed with private operators for a volume of 31,000 MT.

66 / SONATRACH 2006

MARKETING

SUBSIDIARIES

NAFTAL NATIONAL OIL PRODUCT MARKETING AND DISTRIBUTION COMPANY NAFTAL IS A SONATRACH 100% SUBSIDIARY, THROUGH ITS SVH HOLDING

> Turnover: AD 192 billion, + 6%

NAFTAL is in charge of distributing oil products on the domestic market. In 2006, the company recorded 6% increase in turnover thanks to the upswing in the business volume of vehicle fuels and bitumen, the increase in fuel prices for aviation and marine fuels and bitumen.

■ Vehicle fuelVehicle fuel consumption was buoyed by the favourable economic climate. In 2006, sales amounted to 7.64 million tonnes, i.e., 371,291 additional tones compared to 2005.The slight increase previously observed on petrol stalled somewhat, especially in regards to normal petrol which dipped 10% due to the increasing number of vehicles fitted with catalytic converters, a distinct shift to diesel-powered vehicles and the application of road worthiness tests for vehicles.The demand for premium unleaded petrol has been rising steadily since its market launch in 1988. NAFTAL therefore invested heavily to achieve extensive coverage of the national market by opening new points of sale (343 service stations sell premium unleaded) and by expanding its transportation capacity.

60% Vehicle fuels

13.5%Aviation and Marine fuels

11.5% LPG

8.7% Bitumens

4.5%Lubricants

1.1% Other

0.4% Special products

0.3%Tyres

Breakdown of turnover by product

SONATRACH 2006 / 67

Change in 2006 turnoverUnit: AD 103

Description 2005 2006 Change 2006/2005

Fuels

- Vehicle 87,048 91,995 +6%

- Aviation 10,580 10,903 +3%

- Marine 9,248 9,837 +6%

Total fuels 106,876 112,735 +5%

LPG 18,433 17,545 -5%

Lubricants 7,290 6,948 -5%

Bitumen 9,072 13,351 +47%

Tyres 806 393 -51%

Special products 531 527 -1%

Others (LPG accessories, LPG/C kits, network products…)

107 98 -8%

Services supplied 1,087 1,609 +48%

Turnover (excluding tax) 144,202 153,206 +6%

PPT 38,265 38,397 +0,3%

Turnover (including PPT) 182,467 191,603 +5%

■ Signature of a sales agreement with UNIPREST, the Algerian national union of service station investors and developers, in charge of the commercial management of the two partners.

■ Signature of a second contract concerning the creation of a semi-public company Naftachin, for the distribution of petroleum products in southern Algeria between NAFTAL and Soralchin, the Algerian Chinese company.

■ Acceptance of the upgrading projects for the Khroub barrelling centre, renovation of the Es Senai warehouse and the Béni Tamou-Blida barrelling centre.


68 / SONATRACH 2006

MARKETINGSUBSIDIARIES

■ Aviation and Marine fuelThe sale of aviation and marine fuels fell by 5% compared to 2005. The marketing of aviation products also dropped by 3% due to the drop of Air Algerie airlines liftings. Indeed, the national carrier is replacing its current aircrafts with less fuel consuming models.The same trend can be observed for marine fuels which dropped by 8% following the technical stoppage of barges which were obstacles to the offshore bunkering of vessels and the shortage of bunker /c fuel from the Béthouia marine centre linked to delays in renovation works (carried out by GTP) on the reception pipeline.

■ LPGLPG sales recorded an operational loss of 130,000 tonnes, mostly due to the 10% drop in packaged butane sales, which account for 73% of total LPG sales.LPG is a highly-competitive market, where NAFTAL competes against 13 private operators. The company was also affected by the development of natural gas sales in Algeria (37% penetration rate in 2006). Sales of bulk propane also declined slightly following the drop in the consumption of certain facilities that operate with large bulk such as propane islands and brick making plants.LPG fuel sales continued their upward trend (2%) although at a slower pace due to the shift to diesel-powered vehicles.

SONATRACH 2006 / 69

Change in AVM fuel salesUnit: tonne

Description Actual

2004 2005 2006

A1 Jet engine fuel 357,590 368,259 360,633

100LL Aviation gas 880 2,662 0

Aviation fuels 358,470 370,921 360,633

Marine diesel fuel 66,299 66,638 55,074

Bunker/C diesel fuel 212,028 265,532 263,281

LSC fuel oil 55,357 42,466 26,735

Marine fuels 333,684 374,636 345,090

Total aviation and marine fuels 692,154 745,557 705,723

Change in LPG salesUnit: tonne

Description Actual

2004 2005 2006

Packaged butane 1,416,197 1,356,445 1,215,938

Packaged propane 14,014 14,220 14,259

LPG/fuel 300,262 308,837 316,226

Sold production (1) 1,730,473 1,679,502 1,546,423

Bulk butane 3,425 3,235 3,138

Bulk propane 126,001 124,007 119,597

Resold unprocessed (2) 129,426 127,242 122,735

Total LPG (1) + (2) 1,859,899 1,806,744 1,669,158

70 / SONATRACH 2006

■ LubricantsThe decline in vehicle lubricant sales which began in 2002 continued during 2006. The decline is particularly visible on engine oils which represent 73% of global sales.The company holds 51% of the national market but faces increasingly fierce competition from private operators.Other factors that had a negative impact on sales included delivery cancellations by certain clients, the time span between oil changes, the low production of RA1Z and the streamlining of packaged oils offer also penalized sales.

■ BitumensBitumen sales jumped 21% reflecting the general rise in domestic demand. This peformance was primarily driven by the higher sales of pure bitumen (+30%) linked to the start up of new construction sites and the expansion of the client portfolio.On this business segment, NAFTAL recorded 68% increase in its market share in 2006, compared to 65% in 2005, despite the highly competitive context and various technical problems.

■ TyresThe declining sales observed in 2005 continued: The sharp 52% drop was due to the shortage in tyre inventories due to the delayed confirmation of import contracts. This is also a highly-competitive market with many operators.

■ Naftal’s service station networkThe service station network comprised a total of 1,909 stations in 2006. 49 more stations were opened during the year.NAFTAL owns 685 stations, i.e., 36% of the entire network.60 new LPG/C points of sale were opened in 2006 raising the total number of LPG/C points of sale to 392, representing 20.5% of the coverage throughout Algeria.


SONATRACH 2006 / 71

Evolution in lubricant sales Unit: tonne

Description Actual

2004 2005 2006

Petrol engine oils 13,973 12,565 10,140

Diesel engine oils 49,981 45,545 43,678

Transmission oils 4,099 3,656 3,163

Specialty auto oils 704 986 625

Industrial oils 15,374 12,790 13,764

Greases 2,430 2,094 2,171

Total vehicle lubricants (1) 86,560 77,636 73,541

Aviation lubricants 59 270 77

Marine lubricants 862 720 639

Total AVM lubricants (2) 921 989 716

Total l lubricants (1) + (2) 87,481 78,625 74,257

Evolution in bitumen sales Unit: tonne

Description Actual

2004 2005 2006

Pure bitumens 240,076 245,450 319,016

Oxidised bitumens 8,696 11,385 10,782

Resold unprocessed (1) 248,772 256,835 329,798

Fluidified (cut-back) bitumens 88,458 68,265 66,228

Emulsions 6,525 6,060 6,321

Production sold (2) 94,983 74,325 72,549

Total bitumens (1) + (2) 343,755 331,160 402,347

Evolution in tyre sales Unit: PNM

Description Actual

2004 2005 2006

Vehicle tyre casings (1) 158,749 135,097 70,137

Vehicle inner tubes (2) 50,866 40,137 14,246

Total vehicle tyres (1) + (2) 209,615 175,234 84,383

72 / SONATRACH 2006

COGIZ INDUSTRIAL GAS PACKAGING AND MARKETING100% SUBSIDIARY OF SONATRACH, THROUGH ITS SVH HOLDING

> Turnover: AD 296 million, + 21%

COGIZ is the leading supplier of helium in Algeria and a major supplier of nitrogen. 2006 was marked by 21% increase in turnover despite the postponed start up of the HELISON plant initially scheduled for January 2006 and the general stoppage of GL2/Z and GL1/Z.Added value rose significantly from 0.53 in 2005 to 0.59 in 2006 and remains satisfactory given the significant operating expenses incurred for the marketing of the nitrogen produced by the HELISON plant, which is still inactive.The company continues to strive towards better penetration of the North African market and the development of opportunities to Africa and Europe.


■ Removal of the restriction on the marketing of helium to European countries and others.

■ Signature of a HELISON Marketing contract concerning the sale of bulk helium with a volume of 5 million SCFT.

■ Signature of a bulk helium spot sale contract with Helium Service France (Air Liquide) for a total volume of 3 million SCFT.

■ Signature of a contract with Air Liquid for the supply of packaged helium (liquid and gaseous) for an annual volume of 12,200 eqv cm.

■ Three liquid nitrogen deliveries were exported in 2006 with Air Liquide Tunisia and Al Houria of Libya. The total volume of exports reached 81,000 litres.

Nitrogen sales

Description Volume (litre equivalent) Value (in AD thousand)

2005 2006 2005 2006

Liquid nitrogen (L) 9,684,108 8,507,851 64,160 59,477

Gaseous nitrogen (cm) 13,168,067 11,609,652 115,878 110,640

Total litre equivalent 28,992,124 25,530,801 180,038 170,117

1 litre of liquid nitrogen = 0.682 cm of gaseous nitrogen.

Helium sales

Description Volume Value (in AD thousand)

2005 2006 Rate %

Liquid helium (L) 7,900 5,598 100

Gaseous helium (cm) 19,993 24,519 133

Total helium national market (cm equivalent) 25,823 30,117 125

Bulk helium (L) National 35,547 5,261 129

Export Export packaged in cm 12,546 6,045 72

Helium Export in bulk (L) 210,638 30,552 107

Total litre equivalent 298,000 71,975 110

1 litre of liquid helium = 0.738 cm of gaseous helium.


SONATRACH 2006 / 73

HYPROC SC HYPROC SHIPPING COMPANY100% SUBSIDIARY OF SONATRACH, THROUGH ITS SVH HOLDING

> Turnover: AD 15,848 million, + 10%

■ LNG transportTurnover jumped 6% to AD 6,226 million over 2005 figures, thanks to improved vessel availability.

■ LPG transportLPG transport recorded dipped 6% down to turnover of AD 1,030 million due to the technical stoppages of LPG carriers (Barouda and Berkine).

■ Transport of refinery products Turnover earned in 2006 amounted to AD 2,476 million, representing 8% increase over the year 2005. This increase was driven by the strong demand for charter expressed by Sonatrach and NAFTAL.

■ Transport of chemical products In 2006, the coastal transport activity provided for the national market by chartered vessels generated turnover of AD 54 million, i.e., an increase of 23% compared to the year 2005.

■ Transport of crude and condensateThis activity generated a turnover of AD 5,551 million in 2006, i.e., an increase of 23% compared to fiscal 2005 due to the rising demand from Sonatrach.

■ Shipping operationsFor vessel shipping operations, 1,892 transits were processed by the different agencies in 2006 representing a decline of 6%, for revenues of AD 260 million, or a drop of 12% compared to the year 2005, mainly due to the low shipping activity of vessels.


■ Launch of a search for partners for the acquisition of two methane carriers on the American market.

■ Disinvestment operation of five vessels.

■ Maintenance of the ISO 9001/2000 certification of Shipping Agencies.

■ Performance of external audits regarding the security of vessels (ISPS Code).

38% LNG

35%Crude & Pack.

16% Refinery & Chem. Prod.

7% LPG

2%Shipping

2% Ship management

Breakdown of revenues by segment

74 / SONATRACH 2006

NEAL NEW ENERGY ALGERIA NEAL IS A 45% OWNED SUBSIDIARY OF SONATRACH, THROUGH ITS SVH HOLDING

The Company is responsible for promoting the production of renewable energy.

In 2006, the company participated in the following projects:• Tindouf 10MW project,• Hassi R’mel solar technopole.Objectives were redefined. They include cutting down on SCP costs, developing the Solar Fuel and industrial segments.


SONATRACH 2006 / 75

AEC ALGERIAN ENERGY COMPANY AEC IS A 50% OWNED SUBSIDIARY OF SONATRACH, THROUGH ITS SVH HOLDING

Significant events in 2006 included the expansion of the production capacities of certain seawater desalination projects decided by public authorities.The programme defined at year end 2004 with a capacity of approximately 700,000 cm/day, had trebled that capacity to nearly 2,260,000 cm/day at

year end 2006. This led to amendments in certain finalised packages, negotiations to improve the prices obtained, and site relocations for certain projects. These changes had an impact on the schedule planned for certain projects especially in terms of deadlines.

The seawater desalination projectdefined at year end 2006 was as follows:

Projects Capacities

Kahrama 88,880 cm/d

Hamma 200,000 cm/d

Skikda 100,000 cm/d

Béni Saf 200,000 cm/d

Honaine (Tlemcen) 200,000 cm/d

Mostaganem 200,000 cm/d

Cap Djinet 100,000 cm/d

Fouka 120,000 cm/d

Souk Ethlata (Tlemcen) 200,000 cm/d

Oued Sebt (Tipaza) 100,000 cm/d

Tenes 200,000 cm/d

El Tarf 50,000 cm/d

Macta (Mers El Hadjadj Est) 500,000 cm/d

■ Electricity projects The Skikda power plant projectThe Skikda electricity power plant (SKS) entered pre-commercial production on 8 November 2005. At year end 2006, total generated electricity supplied was 3,386,000 Mwh. The availability rate was 87%.

Volume delivered water and electricity

Since the first commissioning

until 31/12/2005

In 2006 Between the provisional acceptance of the

complex and 31/12/2006

Volumes of desalinated seawater delivered 2,336,060 cm 28,296,804 cm 25,472,864 cm

Volumes of electrical energy delivered 638,962 Mwh 2,622,789 Mwh 2,317,426 Mwh

76 / SONATRACH 2006

In the frame of a voluntary step in order to participate to the preservation of the natural and cultural heritage, the protection of the environment and the protection of the bio diversity, a data base has been developed in 2006 to enable the Group to schedule the location of its future oil and gas plants in accordance with the national natural and cultural heritage.

SONATRACH

SUSTAINABLE DEVELOPMENT

SONATRACH 2006 / 77

Pho

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78 / SONATRACH 2006

SUSTAINABLE DEVELOPMENT

Due to its status as a well-established major and oil and gas company and as a civic company, the preservation of worker’s health, the safety of plants and environmental protection have long been key priorities for Sonatrach Group.

Many actions directed at this safety goal were implemented during the year. The most significant included the creation of contingency and crisis functions and inspections for the Group’s facilities, the drafting of Directive D-497 of 18 January, 2006 regarding the safety of installa-tions and workers, and the development of a data base on the location of Sonatrach Group’s plants in relation to Algeria’s natural and cultural heritage (decision-making assistance tool).

SONATRACH 2006 / 79

Environmental management is the other key aspect of the current ini-tiatives. On this topic, as part of the continuous improvement efforts, Sonatrach’s actions were first of all directed at identifying and mapping all polluted sites and grounds by launching the operation to count po-tential and proven sources of ground and underground pollution and the elimination of PCB; the monitoring of the tree-planting campaign carried out by the Group’s structures.

An HSE training program has been implemented by the Group’s training structures alone or in partnership with internationally renowned training structures (IFP and Gordon University), it concerned:• the improvement of skills and the evaluation of HSE training needs for

each operational site (CIS HMD pilot project with GRU);• launch of the “safe behaviour program” to improve human behaviour;• training and introducing the systematic investigation of accidents and

incidents;• training on the reporting system of near accidents;• training in defensive driving for professional drivers.

In the field of corporate responsibility, Sonatrach participated, through numerous projects and initiatives, in the environmental preservation ef-forts deployed both at national and international level for sustainable development.

80 / SONATRACH 2006

SONATRACHHUMAN RESOURCES

Sonatrach and its different holdings continued the human resource reinforcement policy launched several years ago.The key priority areas of the development plan remained the stabilisation of the permanent workforce and high level recruitment.

The training plan focused on reinforcing competences in basic business areas, in particular in upstream activities. The development of managerial skills represents the second linchpin.

SONATRACH 2006 / 81

HUMAN RESOURCES

NATURAL GAS > In order to raise the awareness of Sonatrach Group human resources to the challenges of the energy master and the energetic efficiency, two training programs have been set up in 2006 named “People and Energy” and “Energy auditors”.

82 / SONATRACH 2006

HUMAN RESOURCES

> Total Sonatrach Spa

40,252 agents > Female staff

4,572 agents

> Recruitment

2,344 agentsof whom 84.5% university graduates

RECRUITMENT FOCUSED ON BASIC BUSINESS AREAS

The 2006 hiring translates a high level of qualification and means to respond to the needs expressed by the different activities. The staff stability is pursuing.

SONATRACH 2006 / 83

HUMAN RESOURCES

KEY HUMAN RESOURCE FEATURES IN 2006

Sonatrach Spa employed a total of 40,252 agents, 38,012 of whom were permanent.

The female staff totalled 4,572 employees representing 12% of permanent staff.Temporary staff totalled 2,240 employees representing 4.4% of the company's total workforce. 898 definitive departures of permanent employees were registered, with 68% retirement of them.

2,344 permanent employees were recruited, 84.5% of them were univer-sity graduates. External recruitments represente 96%. The most active sectors in recruitment are the operational ones Upstream (923 recruit-ments), Downstream (642 recruitments) and (Pipeline) Transportation (529 recruitments).

Total payroll cost amounted to AD 62 billion, representing a 12.3% increase compared to 2005.

The efforts deployed by the company have significantly contributed to the recruitment of more university graduates (+26%). There is now a total of 15,082 engineers, executives and senior technicians, representing 40% of the workforce.During fiscal 2006, the total workforce, subsidiaries included was 68,567 agents, slightly down by 1.9%. 22% of the permanent staff of subsidiaries are university graduates.

84 / SONATRACH 2006

HUMAN RESOURCES

POSITION OF STAFF WORKFORCE STATUS

We notice a slight stabilisation of the company’s total workforce compared to fiscal 2005.The permanent workforce increased from 37,205 in 2005 to 38,012 in 2006.Temporary staff (excluding safety) declined by 5.5%.

Actual 2005 Actual 2006 Actual rate

Permanent 37,205 38,012 99.7%

Temporary 2,371 2,240 91.8%

Foreign 1 0 0

TOTAL 39,577 40,252 99%

■ Female staff 56.2% of female staff work in administration and 26.8% in support.

2,517 i.e. 56.2% Administration

1,218 i.e. 26.8%Support

592 i.e. 12.9% Specific

102 i.e. 2.2%Maintenance

89 i.e. 1.9% Industrial safety

Breakdown of female staff by activity

Permanent staff by socio-professional category

2005 2006

Executives 13,359 14,216

- including senior executives 1,351 1,504

- including engineers 5,451 5,705

- including university executives 2,711 3,085

Supervisory staff 16,792 17,570

- senior technicians 4,686 4,788

Execution 7,054 6,226

■ Breakdown of recruitmentsby socio-professional category

Executives 1,054

Supervision 947

Execution 343

TOTAL 2,344

SONATRACH 2006 / 85

HUMAN RESOURCES

TRAINING FOCUSED ON MARKET NEEDS

> A training budget of AD 3,229 million, + 62%

> 26,077 trainees> 91% of professional development courses

The 2006 training plan focused on the development of managerial skills and HSE culture. Emphasis was also placed on stronger specialisation of basic business areas, which required 41% of training time.30%

Operation &Dev. of Deposits

25%Hydrocarbonsprocessing

12% Exploration

12% Reservoir engineering

11%HydrocarbonsTransport

8%Drilling

2% HydrocarbonsMarketing

Breakdown of training actions by activity

Initiatives geared towards management represent 61.7% of achievements with a strong participation in the fields of NICT technologies, information systems for management, senior executives, finances and human resources.

70% of training actions linked to basic business areas were delivered by corporate training centres.

75% of training actions linked to basic business areas were aimed at professional development. 12% of long-term courses were aimed at enhancing the professional skills of the Human Resource staff. 20% of courses linked to management business areas and support were mostly English language proficiency classes.

Special emphasis continued to be placed on maintenance and industrial safety training programmes. 2,278 agents were trained in industrial maintenance and 3,289 in industrial safety. 20.5% of training was provided by national agencies and 5,431 agents were trained in Algeria. 3.4% of training actions was carried out abroad with specialised organisations. 31% of training carried out abroad targeted advanced areas linked to basic business areas and 254 agents received professional development courses in the areas of exploration, operation, drilling and reservoir engineering.

35% Other (tax and communication, etc.)

17%Languages

15% Management information systems

11% NICT

7%Management

5%Human resources

4% Finances

3% Legal

3% Purchases

Breakdown of training actions by discipline

86 / SONATRACH 2006

HUMAN RESOURCES

CORPORATE INITIATIVES

In 2006, Sonatrach continued the implementation of corporate training programmes for executives of all activities and structures in the company.

The actions carried out included:• HSE Masters: 21 engineers,• Industrial Safety and prevention: 100 engineers,• Oil economy: 45 engineers,• Business law: 15 legal executives,• E-MBA: 44 executives,• MBA: 59 executives,• Project management course for 67 project managers,• Chartered accountants training: 28 executives,• Training of administrators: 180 Group administrators,• Leaders of the future course: 23 executives,• Oil tax system: 20 executives (04 groups totalling 87 financial and legal

executives, launched end 2006 and early 2007),• Training of new solicitors: 29 executives.

Helping to train the youth

2006 Achievement

Apprenticeship 1,587

Professional practicals 823

Industry work experience 1,447

TOTAL 3,857

SONATRACH 2006 / 87

HUMAN RESOURCES

TRAINING

CPETHE COMPANY TRAINING CENTRE

The aim of the Company Training Centre is to train the Group executives in different areas, especially in management, management techniques, information technology and communication.

In 2006, the CPE recorded 7% growth in its activity regarding group structures, in particular for Upstream activity. This increase was driven by better teaching methods and hosting conditions, as well as the implementation of agreements specific to the training needs of the Group structures. An example includes the specific courses delivered in certain areas during 2006:• 5th Inforum show devoted to Knowledge Management,• training of Sonatrach Group administrators,• training of DMI (MEM) management,• training in contract award procedures,• post graduate specialisation in network security,• post graduate specialisation in labour law and social security.

2006 training assessment

2004 2005 2006

Trainees 8,953 13,245 17,262

Training days 6,018 7,205 7,434

Man/Days 75,849 89,148 97,045

In addition, the Company Training Centre confirmed its participation in change processes through the organisation of meetings, workshops and brainstorming at Group and Sector levels. For example, the Centre organised 20 brainstorming sessions for 1,644 participants.

54% Upstream

19% General Management

10% Subsidiairies

7%Dowstream

6% Pipeline transportation

4% Others

Breakdown of training actions by activity

41% South

33% West

25%Centre

1% East

Breakdown of training actions by region

88 / SONATRACH 2006

HUMAN RESOURCESTRAINING

IAP-CUALGERIAN OIL INSTITUTE ANDCORPORATE UNIVERSITYTHE IAP-CU IS 51% OWNED BY SONATRACH, 25% BY SONELGAZ AND 4% BY ENTP, ENSP, ENAGEO, ENAFOR, NAFTEC AND NAFTAL

The purpose of the grouping is to meet the needs of the sector of energy and mines in terms of training, professional development and recycling needs of the energy and mining industries.

The group is organised around the following specialist training bodies:• the Engineering School of Boumerdes: in charge of training specialised

engineers and Master of Science in the scientific and technical fields of oil and gas, electricity and mining,

• the École des Techniques Pétrolières Appliquées de Skikda: in charge of training specialist senior technicians and application engineers in petroleum technologies,

• the École des Techniques Gazières Appliquées d’Oran: in charge of training specialist senior technicians and application engineers in gas technologies.

■ ResearchThe research conducted at the IAP-CU is, by its nature, applied research and normally takes the form of theses for engineers, masters and masters of science.It covers all the technical areas of the oil and gas industry and has the following objectives:• developing research capacities through the creation of research

laboratories based on the research priority areas defined with the energy and mining industries,

• perfect expertise in the methods, procedures and exploitation of the research and analysis conducted,

• developing research, expertise and synthesis capacities,• creating an environment capable of attracting the best skills.

SONATRACH 2006 / 89

Breakdown of courses by activity and by type of IAP training

Short term Long term TOTAL

Upstream 1,240 328 1,568

Downstream 210 233 443

Pipeline transportation 424 21 445

Marketing 44 2 46

Headquarters’ structures 9 2 11

TOTAL 1,927 586 2,513

■ 2006 Achievements

2006 long training coursesby course type:• Master of Science: 54• Masters: 6• Master + PGS: 30• Specialist engineers: 75• Application engineers: 6• Supervisors: 10

Professional development in 2006:• Number of programmes: 32 • Number of participants: 2,046• Number of days: 2,285• Man/days: 52,560

Catalogue seminars: • Number of seminar: 209• Number of participants: 2,402• Number of days: 1,226• Man/days: 13,891

> IAP delivers 13.7% of intra-company training> 77% of training delivered by the IAP

involve(s) professional courses and 23% are specialisations

> 62% of IAP courses were delivered to Upstream employees, 18% to Downstream,18% pipeline transportation and 2%to Marketing and headquarters’ structures

90 / SONATRACH 2006

> 10.2% of intra-company training is delivered by Naftogaz

> 68% of training delivered by Naftogaz is for professional development and 32% are specialisations

> 98.8% of training delivered by Naftogaz concerned Upstream Activity and 1.2% Downstream

> 33.6% of intra-company training is delivered in the training centres of businesses

Breakdown of courses by activity and by NAFTOGAZ type of training

Short term Long term TOTAL

Upstream 1,249 598 1,847

Downstream 0 0 0

Pipeline transportation 23 0 23

Marketing 0 0 0

Headquarters structures 0 0 0

TOTAL 1,272 598 1,870

NAFTOGAZ INSTITUTE

HUMAN RESOURCESTRAINING

SONATRACH 2006 / 91

HUMAN RESOURCES

EMPLOYEE WELFARES

In fiscal 2006, the Employee Welfare Department carried out a large number of initiatives based on the priority areas defined by the corporate welfare policy.Its primary goal is to ensure the well-being of employees and their families nationwide. Its annual action also includes the development of local supportive actions implemented by the company on various occasions, such as during Ramadan for example.

MEDICO-SOCIAL ACTIVITIES

■ Occupational MedecineTo promote and maintain the physical and moral wellbeing of the group’s employees, the Employee Welfare Department has implemented nationwide activities through 119 infrastructures. Its action is carried out by 50,583 permanent, temporary and trainee agents in 36 companies approved by the Department of Health.The medical staff includes 280 occupational therapists, general practitioners, dental surgeons, pharmacists and microbiologists. They are supported by 176 paramedical staff.

> 2006 figures205,718 recorded cases65,028 clinical cases 1,888 workplace cases138,802 para clinical cases

■ Medical treatment 838,307 cases were examined within medical

infrastructures during fiscal 2006 in areas such as dental care, general and specialised medical care, radiography and paramedical services.

■ Social action and protection This action is aimed at helping current and retired

employees together with their families facing challenging circumstances such as accidents, deaths, invalidity or retirement. 11,728 files were processed in 2006.

92 / SONATRACH 2006

HUMAN RESOURCESEMPLOYEE WELFARE

SOCIAL AND CULTURAL ACTIVITIES

■ Children26 kindergartens throughout the national country were attended by 2,109 children aged 3 – 5 years under the care of 218 instructors. 5-year old children, including 1,816 children of Sonatrach employees received a teaching programme devised by the Ministry of National Education.• 76 field trips were organised for 5,618 children aged between 8 and

12 years.• 9 summer camps were attended by 6,657 children aged between 8 to

12 years.• 268 teenagers aged 13 to 15 years went on weekend trips and mobile-

home holidays were organised for 333 teenagers.• 82 sports academies received 6,822 children and teenagers.• 32 cultural workshops were organised for 2,687 teenagers and adults.

■ Sports Sports activities are encouraged throughout the country. It is one of the key priorities of the Employee Welfare Department. Sports initiatives have been very successful, in particular in the south of the country, despite the constraints linked to the new working systems (4x4). As part of the year long festivities in 2006, 16,901 people participated in meetings, all disciplines combined, and 9,502 in occasional events, such as on 24 February and 1 May.

■ Cultural activitiesA total of 99,498 people participated in the 322 cultural events organized throughout the country.The most popular events included 122 artistic shows attended by 32,640 people and 21 conferences attended by 15,200 people. 8,930 people participated in 9 cultural competitions for adults and 10,585 employees participated in 31 board “game tournaments”. Various theatrical performances, book shows, chess matches and religious meetings were also organised.

■ Leisure activities A large number of employees and their families enjoyed various holiday opportunities. 1,166 couples went to spa resorts, 1,212 were received in holiday centres and 4 sessions of family holidays were attended by 2,783 participants on camp sites.

SONATRACH 2006 / 93

MORE LOCAL PRESENCEFOR WORKERS AND CITIZENS…The Employee Welfare Department intensified its efforts to be closer to industrial sites, compounds and urban areas with a high number of Sonatrach employees.

The quality of services supplied to workers and their dependants continue to be a primary concern for the Department. This concern is reflected in the improved development of hospitality structures, improvement of summer events and activities for children in preschool structures as well as structures for retirees.

In 2006, 242 children from south Wilayas, 797 from the APC, DJS and other associations attended summer camps. Donations were given to different “daïras” and associations (gifts and trophies, sports equipment and clothes, back-to-school packages, circumcision packages and Ramadan baskets).

Last but not the least is the Countryside hospital. Sonatrach implements its healthcare policy through the Employee Welfare Department. The organisation of all human, material and organisational resources enable efficient management of emergency and disaster situations. To this end, the group has invested in special equipment to cope exceptional situations and emergency and disaster medical resources: an advanced healthcare centre, a decontamination unit and a hospital with 150 beds. They are located in Alger, Arzew and Hassi Messaoud.

To ensure their operation, training courses were organised for doctors, guards, Sonatrach paramedical staff, oil industry companies, civilian protection and healthcare sector companies supervised by French specialists in disaster medical aid and emergency services.

94 / SONATRACH 2006

SONATRACH GROUPas at December 31, 2006

MARICONSULT 50%

SAMCO 5%

MEDGAZ 26.32%

ISGL 50%

ISGSL 50%

JV ANGT 25%

GALSI 36%

M.LNG.T.C. 25%

SLTC 25%

TRANSMED 50%

ALEPCO 50%

SIHC B.V.I.

SPTC B.V.I. 100%

SIPEX B.V.I. 100%

TMPC 50%

SPC B.V.I. 100%

SPI B.V.I. 100%

SIFID LUXEMBOURG

100%

SH PERU CORP 100%

SVH HOLDING

NAFTAL 100%

HYPROC 100%

COGIZ 100%

AEC 50%

NEAL 45%

100 %100 %

I N T E R N A T I O N A L L E V E L

SONATRACH SPA

S U B S I D I A R I E S A N D P A R T I C I P A T I O N S

SONATRACH 2006 / 95

SIP HOLDING

CASH 38.9%

SARPI 50%

STH 60%

SKS 30%

SKB 49%

SKH 10%

BAOSEM 35%

SKC 35%

IFA 33.40%

RCH HOLDING

NAFTEC 100%

ENIP 100%

EGZIA 100%

EGIZK 100%

HELIOS 51%

SOMIZ 50%

SOMIK 50%

SOTRAZ 67%

HELISON PRODUCTION

49%

SORALCHIN 30%

EL ANDALUS 20%

SPP HOLDING

ENGCB 100%

ENAFOR 100%

ENTP 100%

ENAGEO 100%

ENSP 100%

ENGTP 100%

ENAC 100%

BRC 40%

ALGESCO 24%

MI ALGERIA 40%

GEPCO 40%

ENOR 48%

SIMAS 16%

SAFIR 36%

NAFTOGAZ 100%

SOPREP 60%

IAP 82%

TAL 100%

100 %100 %100 %

N A T I O N A L L E V E L

SONATRACH

Headquarter - Chemin Djenane El Malik, Hydra, Algiers, AlgeriaPhone: 213 21 54 70 00 - Fax: 213 21 54 77 00

Website: www.sonatrach-dz.com - Email: [email protected]

As a commitment to preserving the environment, this document is printed on fully ecologic paper bleached without chlorine.

Documents

SONATRACH ANNUAL REPORT 2006 - s3.amazonaws.coms3.amazonaws.com/zanran_storage/€¦ · SONATRACHannual report 2006 Headquarter ... blocks (1, 2, 3, 4 and 9) of the Taoudeni basin