Reggane North or Reggane Nord Development Project involves the development of six gas fields: Reggane, Azrafil Southeast, Kahlouche, South Kahlouche, Tiouliline and Sali in blocks 351c and 352c of the Reganne basin in the Algerian Sahara desert.
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The offshore site is situated 1,500km south-west of Algiers, the capital city of Algeria, which is currently the country with the biggest gas reserves in the world.
Reggane North’s development was implemented by the Groupement Reggane partners, comprising the operator Repsol (29.25%), RWE Dea (19.5%), Sonatrach (40%) and Edison (11.25%).
The total development cost for the project is estimated to be €2.22bn (approximately $3bn).
Groupement spent roughly $450m on the Reganne development plan from the period 2008-2012.
The Reggane North Development Project forms part of Phase I of the larger Southwest Gas Project, which also involves the development of the Timimoun and Touat gas fields.
The three gas fields began production in December 2017 and will contribute to the country’s gas output target of more than one trillion cubic feet per year by 2018.
Reggane North is expected to be in production until 2041.
In Salah Southern Fields (ISSF) development project is part of the In Salah Gas (ISG) project, which includes the development of seven gas fields located in the Saharan desert in Algeria.
Reggane North discovery, geology and production capacity
Exploration activities at the site started in 2002 with the grant of the concession rights to Repsol, RWE Dea and Edison the same year.
The discovery of gas in the concession was announced in April 2006 from the exploration wells Reggane-5 and Sali-1, while the last discovery from the concession was the Kahlouche Sud well in January 2009.
3D seismic surveys were completed for the project in April 2014, covering an area of 1,450km², and 15 exploration wells were drilled during the exploration phase.
Reggane’s gas reserves are located predominantly within Lower Devonian (Siegenian) and Carboniferous sandstones.
The fields are expected to produce around eight million cubic metres per day, or 283 million cubic feet per day (100 billion cubic feet per year) of gas for the first 12 years.
The lifespan of the fields is estimated to be 25 years and a total of approximately 1.7 trillion cubic feet of gas is expected to be produced during this period.
Reggane Nord project development details
The development plan for the project was approved in November 2011, while the final go-ahead was given by the Algerian national agency ALNAFT (Agence Nationale pour the L’expertise des Hydrocarbures Resources) in February 2012.
Construction works began following the award of the main contract to Petrofac in May 2014 and first production was subsequently achieved in December 2017.
The field was brought into production with the drilling of up to 26 production wells. Surface facilities were also constructed as part of initiative.
The long-term plan for the site envisions the development of up to 104 wells across the six fields.
In addition, the project saw the construction of a central processing facility with a capacity of eight million cubic metres per day, 209km of gas gathering systems and a 74km pipeline for exportation purposes.
A variety of infrastructure, including a runway and electrical systems, were also constructed under the plan.
Contractors involved with the Algerian gas field
The engineering, procurement, construction, commissioning and start-up (EPCCSI) contract for the gas treatment, accumulation and export facilities was awarded to Petrofac for a sum of $970m.
Sonatrach’s subsidiary National Company of Civil Engineering (GCA Spa) was awarded a contract to conduct works on a road system covering 162km, as well as the construction of an airstrip and the supply of 26 drilling rigs.
Genesis Oil and Gas Consultants performed the basic front-end engineering and design (FEED) for the project.
