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CNPC in Algeria

CNPC has oil and gas operations in Algeria, involving oilfield exploration and development, refinery construction and operation, and refined products marketing, while also providing oilfield services.
  • Oil and Gas Operations
  • Oilfield Services, Engineering and Construction
  • Major Events

CNPC has acquired the exploration licenses for Block 102a /112, Block 350 and Block 438b in Algeria. We also operate the Adrar upstream and downstream integrated project.

Block 102a /112

On December 22, 2003, CNPC signed an agreement on an exploration license for Block 102a /112 with SONATRACH. CNPC owns 75% equity of the block. The block is located in the Chelif Basin in the north of Algeria, covering an area of 9,923 square kilometers. 2-D and 3-D seismic data acquisition and processing for Block 102a /112 have taken place as scheduled.

Block 350

On December 22, 2003, CNPC signed an agreement on an exploration license for Block 350 with SONATRACH. CNPC owns 75% equity of the block. Block 350 is located in the northwestern Oued Mya Basin in the north of the Sahara Desert, covering an area of 8,666.1 square kilometers. In 2006, an oil and gas discovery was made in BEL-E-1, the first exploration well in the block. In 2008, a 215Kcm/d gas flow was obtained from the barefoot interval in horizontal well Bel Z-1, which was drilled using underbalanced drilling techniques.

Block 438b

CNPC won the bid for Block 438b with 100% equity on July 29, 2004. The contract is a PSA one with a 7-year exploration term and a 25-year development term. The block is located in the Oued Mya Basin and covers an area of 4,354 square kilometers. In 2006, the first exploration appraisal well HEB-A-1 in Block 438b was spudded. In February 2007, a high yield oil and gas flow was obtained from well HEB-A-1, achieving a daily output of 700 cubic meters of light crude oil and 220,000 cubic meters of natural gas after testing. In 2008, BHT and HEB-A reservoirs were successfully appraised, identifying more proven reserves. In 2009, risk prospecting at the 438B block in Algeria resulted in new breakthroughs.

Adrar Upstream and Downstream Integrated Project

On May 12, 2003, CNPC won the tender for the Adrar upstream and downstream integrated project with a contract term of 23 years. The project is composed of three parts — oilfield appraisal and development, construction of a refinery and marketing of refined products. On July 14, 2003, CNPC and Algeria State Oil Company (SONATRACH) signed the Shareholders Agreement of the Refining Company of Adrar project. CNPC and SONATRACH have 70% and 30% holdings in the project.

In 2006, the construction of an oilfield with an annual output of 600,000 tons was completed, and in April, 2007, the 600kt/a Soralchin Refinery was put into operation. In 2013, the Soralchin Refinery was overhauled and fulfilled the annual objective for cruderuns.In 2014, the refinery was expanded as planned.

CNPC provides services in geophysical prospecting, well logging, testing and petroleum engineering construction in Algeria. We have undertaken seismic data acquisition projects for Shell and REPSOL, signed contracts with OCTOUAT on well logging, formation testing and workover, and won the tender of a testing project in Block PICD in Algeria invested by Vietnam.

In 2008, we completed wire-line completion logging at well BeL-Z-1, a high-angle well with a depth of about 2,300m and a maximum slant of 53 degrees that resulted in sticking risks, after continuous operation for nearly 10 hours.

Skikda Gas Condensate Refinery

On May 10, 2005, CNPC and SONATRACH signed an EPC contract on the construction of the Skikda Gas Condensate Refinery.

Skikda Condensate Topping Project is located at the industrial area of Skikda, west of Algeria. This project is composed of two contracts—one is the construction of a 5Mt/a condensate refinery, and the other is the storage installations of naphtha, LPG and of forwarding installations of naphtha, fuel oil of the Skikda Refinery. The refinery was accepted by the supervisor and owner, which went on stream in July 2009.

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July 25, 2009 A 5Mt/a gas condensate refinery is completed and successfully put into operation in East Algeria's Skikda industrial park. China Petroleum Engineering Construction Co., Ltd. is the EPC contractor of the Skikda refinery.

Apr. 05, 2007 The 600kt/a Soralchin refinery in Adrar, CNPC's joint venture with SONATRACH, was completed and successfully put into operation.

Feb. 26, 2007 A high yield oil and gas flow was obtained from the first exploration appraisal well HEB-A-1 at Block 438b, with a daily output of 700 cubic meters of light crude oil and 220,000 cubic meters of natural gas.

May 10, 2005 CNPC and SONATRACH signed a contract for the construction of the Skikda Gas Condensate Refinery.

Jul. 29, 2004 CNPC won the tender of Block 438b in the fifth-round tender invitation for Algerian exploratory blocks.

Feb. 04, 2004 CNPC and SONATRACH signed a protocol on cooperation in petroleum sector.

Nov. 29, 2003 CNPC won the bidding for two risk exploration blocks in Algeria: Block 102a/112 and 350.

Jul. 14, 2003 CNPC and SONATRACH signed the Framework Agreement, Upstream Risk Service Contract and the Shareholders Agreement of the Refining Company of Adrar project.

May 12, 2003 CNPC won the tender for the Adrar project integrated with oilfield development, refinery construction and operation, and refined products marketing. 
 

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