AOG / 23 16 February 2013

ALGERIA
q Menzel Ledjmet East Gas Project Brought on Stream by Eni and
Sonatrach
The Menzel Ledjmet East (MLE) natural gas and liquids project undertaken by Eni and
Sonatrach on Block 405b in the Berkine basin has been brought into production. The MLE
project, which entailed the development of the MLE wet gas field that has just come on stream
and the Central Area Field Complex (CAFC) oil and gas field, has a production capacity of
9 million cubic meters/day of natural gas (around 3.3 billion cubic meters/year) and 27,000
barrels/day of liquids, consisting of 12,000 b/d of liquefied petroleum gas, 10,000 b/d of
condensate and 5,000 b/d of crude oil. The CAFC field is to be brought into production later,
starting with the gas reservoir, followed later by the oil reservoir. MLE is located about 220
kilometers south-east of Hassi Messaoud.

A production-sharing contract for the concession came into force on 30 December 2001.
The oil component is for a 25-year period and the gas component for 30 years. Sonatrach points
out that the installation of this additional gaseous and liquid hydrocarbon production capacity
will increase its total capacity and enable it to ensure supplies to the domestic market and deliveries
to the international market.

Eni has been operating in Algeria since the early 1980s and is one of Sonatrachs leading
partners. Its share of production in the country amounted to 69,000 barrels of oil equivalent per
day in 2011, and the company thinks that will rise to 120,000 boe/d in the medium term. The
Italian company has a very rich portfolio of projects in Algeria, since it has interests in Blocks
403a/d, Rom Nord, 401a/402a, 403, 404a, 208, 212, 316b, 319a and 321a.

In April 2011 Sonatrach and Eni agreed to strengthen their already very close cooperation
by signing a cooperation agreement covering the exploration and development of
unconventional hydrocarbons, especially shale gas.

News in Brief

l While the Milan public prosecutor is continuing his inquiries into allegations of
corruption concerning projects undertaken by Saipem in Algeria, and while Saipems
parent company, Eni, and its Chief Executive, Mr. Paolo Scaroni, have been placed under
official investigation, the Italian group has maintained in a statement that it knew nothing
about these inquiries. Eni, which said it was cooperating fully with the prosecutors office,
pointed out that members of Saipems management had either resigned or been
dismissed as a result of these allegations and that in-depth audits were being carried out
at its subsidiary. Eni added that Saipem operated completely autonomously as a listed
company but that it had made recommendations to its subsidiary in this matter and that
these had been heeded.

l Following the hostage-taking at the In Amenas gas complex, Statoil and BP, the two
partners of Sonatrach involved in the production and export of natural gas from the In
Amenas fields (AOG, 1 Feb., 2013), have published the names of those of their employees
who died during the rescue operation. Five members of Statoils staff were killed,
including its Director in Algeria, Mr. Victor Sneberg, while BP lost four employees.