National crude oil production has decreased by 8% to 784 kilotonnes (kt) between June 2022 and 2023. This decline affects most of the main fields, namely Halk el Manzel, which started production in 2021 (-43%), El borma (-16%), Ashtart (-14%), M.L.D. (-31%), Cherouq (-25%), Ouedzar (-28%), Fanig/Bag/Tarfa (-17%), Adam (-4%), El Hajeb/Guebiba (-2%) and Miskar (-8%).
On the other hand, several fields recorded production improvements, including Nawara (+53%), Gherib (+27%) and Cercina (+40%). As regards other fields, production resumed in April 2023 in the Oued Zar concession, while it has been suspended for maintenance purposes since March 30, 2023 in the Beni Khalled concession. Average daily oil production decreased from 36.4 thousand barrels per day at the end of June 2022 to 33.9 thousand barrels per day at the end of June 2023.
Natural gas resources down 7%
Natural gas resources (national production + fiscal contribution) reached 1366 kilotonnes of oil equivalent (ktoe) at the end of June 2023, a decrease of 7% compared to the same period of the previous year. Dry commercial gas production increased by 11%. Conversely, the fee for Algerian gas transit posted a decrease of 2% at the end of June 2023 compared to the end of June 2022, amounting to 507 ktoe.
In addition, production in the Hasdrubal field (-4%), Southern Commercial Gas (-36%) and Miskar field (-10%) in the Maamoura concession declined. Production was suspended from February 25 to March 3, 2023 in the Ghrib, Sidi Marzoug and FR, BG and TR concessions. The sale of GPL resumed on March 10.
In addition, the fiscal contribution for Algerian gas transit (507 ktoe) decreased by 2% at the end of June 2023 compared to the end of June 2022. The distribution of the total contribution between that ceded to the Tunisian Electricity and Gas Company (STEG) and that exported shows that the majority is ceded to STEG (55%). An excess of STEG deductions on fees for the Tunisian State in January 2023 has been identified and corrected.
Algerian gas purchases decreased by 7% between the end of June 2022 and the end of June 2023, reaching 1027 ktoe. National gas supply went down 12% between the end of June 2022 and the end of June 2023, reaching 2166 ktoe. The distribution of national gas supply by source posted a slight increase in the share of domestic gas from 39% to 40%, a decrease in the share of contribution in kind and ceded to STEG from 16% to 13% and an increase in the share of Algerian gas purchases from 45% to 47%.
Decline in national demand for oil products
The national demand for petroleum products has recorded a decline of 4% between the end of June 2022 and the end of June 2023, amounting to 2173 ktoe. Demand for liquefied petroleum gas (LPG) (-1%), gasoline (-26%), gasoline (-5%) and diesel (-8%) has decreased. Conversely, demand for jet fuel increased by 11% and demand for petroleum coke rose by 19%.
Consumption of road fuels fell by 7% between the end of June 2022 and the end of June 2023, accounting for 62% of total oil product consumption. LPG consumption decreased by 1%, while petcoke consumption increased by 19%. In addition, aviation kerosene consumption went up significantly by 11% by the end of June 2023 compared to the same period in the previous year due to the resumption of activities in the aviation sector, which had been severely affected by the COVID-19 pandemic.
Total demand for natural gas fell by 12% between the end of June 2022 and the end of June 2023, amounting to 2161 ktoe. Demand for electricity generation decreased by 12% and demand for final consumption went down by 11%. The electricity sector remains by far the largest consumer of natural gas (65% of total demand at the end of June 2023), as more than 97% of electricity production relies on natural gas. The decrease in demand in the electricity sector is due to the limited availability of natural gas and does not reflect the actual demand in the sector.
In the end use sector (excluding electricity generation), demand for natural gas fell by 11% to 750 ktoe. Demand from medium and low pressure customers fell by 5%, while demand from high pressure customers dropped by 25%.
The IPP-Rades power plant, which joined the STEG fleet in June 2022, is currently in a production standstill.
Source: Agence Tunis Afrique Presse