Algeria Country Profile

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After more than a century of rule by France, Algerians fought through much of the 1950sto achieve independence in 1962. Algeria's primary political party, the NationalLiberation Front (FLN), has dominated politics ever since. Many Algerians in thesubsequent generation were not satisfied, however, and moved to counter the FLN'scentrality in Algerian politics. The surprising first round success of the Islamic SalvationFront (FIS) in the December 1991 balloting spurred the Algerian army to intervene andpostpone the second round of elections to prevent what the secular elite feared would be

an extremist-led government from assuming power. The army began a crackdown onthe FIS that spurred FIS supporters to begin attacking government targets. Thegovernment later allowed elections featuring pro-government and moderate religious-based parties, but did not appease the activists who progressively widened their attacks.The fighting escalated into an insurgency, which saw intense fighting between 1992-98and which resulted in over 100,000 deaths - many attributed to indiscriminate massacresof villagers by extremists. The government gained the upper hand by the late-1990s andFIS's armed wing, the Islamic Salvation Army, disbanded in January 2000. However,small numbers of armed militants persist in confronting government forces andconducting ambushes and occasional attacks on villages. The army placed AbdelazizBOUTEFLIKA in the presidency in 1999 in a fraudulent election but claimed neutrality inhis 2004 landslide reelection victory. Longstanding problems continue to face

BOUTEFLIKA in his second term, including large-scale unemployment, a shortage ofhousing, unreliable electrical and water supplies, government inefficiencies andcorruption, and the continuing activities of extremist militants. The Salafist Group forPreaching and Combat (GSPC) in 2006 merged with al-Qaida to form al-Qaida in theLands of the Islamic Maghreb, which since has launched an ongoing series ofkidnappings and bombings - including high-profile, mass-casualty suicide attackstargeted against the Algerian government and Western interests. Algeria must alsodiversify its petroleum-based economy, which has yielded a large cash reserve butwhich has not been used to redress Algeria's many social and infrastructure problems.


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Location Northern Africa, bordering the MediterraneanSea, between Morocco and Tunisia

Geographic coordinates28 00 N, 3 00 E

Map referencesAfrica

Area total: 2,381,741 sq kmland: 2,381,741 sq kmwater: 0 sq km

Area - comparative slightly less than 3.5 times the size of Texas

Land boundaries total: 6,343 kmborder countries: Libya 982 km, Mali 1,376km, Mauritania 463 km, Morocco 1,559 km,Niger 956 km, Tunisia 965 km, WesternSahara 42 km

Coastline 998 km

Maritime claims territorial sea: 12 nmexclusive fishing zone: 32-52 nm

Climate arid to semiarid; mild, wet winters with hot,dry summers along coast; drier with coldwinters and hot summers on high plateau;sirocco is a hot, dust/sand-laden wind


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especially common in summer

Terrain mostly high plateau and desert; somemountains; narrow, discontinuous coastalplain

Elevation extremes lowest point: Chott Melrhir -40 mhighest point: Tahat 3,003 m

Natural resources petroleum, natural gas, iron ore, phosphates,uranium, lead, zinc

Land usearable land: 3.17%permanent crops: 0.28%other: 96.55% (2005)

Irrigated land 5,690 sq km (2003)

Total renewable water resources 14.3 cu km (1997)

Freshwater withdrawal(domestic/industrial/agricultural):

total: 6.07 cu km/yr (22%/13%/65%)per capita: 185 cu m/yr (2000)

Natural hazardsmountainous areas subject to severeearthquakes; mudslides and floods in rainyseason

Environment - current issues soil erosion from overgrazing and other poorfarming practices; desertification; dumping ofraw sewage, petroleum refining wastes, andother industrial effluents is leading to thepollution of rivers and coastal waters;Mediterranean Sea, in particular, becomingpolluted from oil wastes, soil erosion, andfertilizer runoff; inadequate supplies ofpotable water


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Environment - international agreements party to: Biodiversity, Climate Change,Climate Change-Kyoto Protocol,Desertification, Endangered Species,Environmental Modification, HazardousWastes, Law of the Sea, Ozone LayerProtection, Ship Pollution, Wetlandssigned, but not ratified: none of the selectedagreements

Geography - note

second-largest country in Africa (after Sudan)

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Population 34,178,188 (July 2009 est.)30

Age structure0-14 years: 25.4% (male 4,436,591/female 4,259,729)15-64 years: 69.5% (male 11,976,965/female11,777,618)65 years and over: 5.1% (male 798,576/female 928,709)(2009 est.)

Median agetotal: 26.6 yearsmale: 26.3 yearsfemale: 26.8 years (2009 est.)

Population growth rate1.196% (2009 est.)

Birth rate

16.9 births/1,000 population (2009 est.)

Death rate4.64 deaths/1,000 population (July 2009 est.)

Net migration rate-0.29 migrant(s)/1,000 population (2009 est.)

Urbanizationurban population: 65% of total population (2008)rate of urbanization: 2.5% annual rate of change (2005-


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10 est.)

Sex ratioat birth: 1.05 male(s)/femaleunder 15 years: 1.04 male(s)/female15-64 years: 1.02 male(s)/female65 years and over: 0.86 male(s)/femaletotal population: 1.01 male(s)/female (2009 est.)

Infant mortality ratetotal: 27.73 deaths/1,000 live birthscountry comparison to the world: 80male: 30.86 deaths/1,000 live births

female: 24.45 deaths/1,000 live births (2009 est.)

Life expectancy at birthtotal population: 74.02 yearscountry comparison to the world: 92male: 72.35 yearsfemale: 75.77 years (2009 est.)

Total fertility rate1.79 children born/woman (2009 est.)

HIV/AIDS - adult prevalence rate0.1%; note - no country specific models provided (2007est.)

HIV/AIDS - people living withHIV/AIDS

21,000 (2007 est.)

HIV/AIDS- Deaths fewer than 1,000 (2007 est.)

Nationality noun: Algerian(s)adjective: Algerian

Ethnic groups Arab-Berber 99%, European less than 1%note: almost all Algerians are Berber in origin, not Arab;the minority who identify themselves as Berber livemostly in the mountainous region of Kabylie east ofAlgiers; the Berbers are also Muslim but identify with theirBerber rather than Arab cultural heritage; Berbers havelong agitated, sometimes violently, for autonomy; thegovernment is unlikely to grant autonomy but has offeredto begin sponsoring teaching Berber language in schools


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ReligionsSunni Muslim (state religion) 99%, Christian and Jewish1%

LanguagesArabic (official), French, Berber dialects

Literacydefinition: age 15 and over can read and writetotal population: 69.9%male: 79.6%female: 60.1% (2002 est.)

Education expenditures 5.1% of GDP (1999)

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Country name conventional long form: People's Democratic Republic ofAlgeria conventional short form: Algerialocal long form: Al Jumhuriyah al Jaza'iriyah ad Dimuqratiyah

ash Sha'biyah local short form: Al Jaza'ir

Government typerepublic

Capital name: Algiersgeographic coordinates: 36 45 N, 3 03 Etime difference: UTC+1 (6 hours ahead of Washington, DCduring Standard Time)

Administrative

divisions

48 provinces (wilayat, singular - wilaya); Adrar, Ain Defla, AinTemouchent, Alger, Annaba, Batna, Bechar, Bejaia, Biskra,

Blida, Bordj Bou Arreridj, Bouira, Boumerdes, Chlef,Constantine, Djelfa, El Bayadh, El Oued, El Tarf, Ghardaia,Guelma, Illizi, Jijel, Khenchela, Laghouat, Mascara, Medea,Mila, Mostaganem, M'Sila, Naama, Oran, Ouargla, Oum elBouaghi, Relizane, Saida, Setif, Sidi Bel Abbes, Skikda, SoukAhras, Tamanghasset, Tebessa, Tiaret, Tindouf, Tipaza,Tissemsilt, Tizi Ouzou, Tlemcen


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Independence5 July 1962 (from France)

National holidayRevolution Day, 1 November (1954)

Constitution8 September 1963; revised 19 November 1976; effective 22November 1976; revised 3 November 1988, 23 February 1989,28 November 1996, 10 April 2002, and 12 November 2008

Legal system

socialist, based on French and Islamic law; judicial review of

legislative acts in ad hoc Constitutional Council composed ofvarious public officials including several Supreme Court

justices; has not accepted compulsory ICJ jurisdiction

Suffrage18 years of age; universal

Executive branchchief of state: President Abdelaziz BOUTEFLIKA (since 28April 1999)head of government: Prime Minister Ahmed OUYAHIA (since23 June 2008)cabinet: Cabinet of Ministers appointed by the presidentelections: president elected by popular vote for a five-year

term; note - a November 2008 constitutional amendmentabolished presidential term limits; election last held 9 April 2009(next to be held in April 2014); prime minister appointed by thepresidentelection results: Abdelaziz BOUTEFLIKA reelected presidentfor third term; percent of vote - Abdelaziz BOUTEFLIKA 90.2%,Louisa HANOUNE 4.2%, Moussa TOUATI 2.3%, DjahidYOUNSI 1.4%, Ali Fawzi REBIANE less than 1%, MohamedSAID less than 1%

Legislative branchbicameral Parliament consists of the Council of Nations(Senate) (144 seats; one-third of the members appointed by

the president, two-thirds elected by indirect vote to serve six-year terms; the constitution requires half the council to berenewed every three years) and the National People'sAssembly or Al-Majlis Al-Shabi Al-Watani (389 seats; memberselected by popular vote to serve five-year terms)elections: National People's Assembly - last held 17 May 2007(next to be held in 2012); Council of Nations (Senate) - lastheld 28 December 2006 (next to be held in 2009)


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election results: National People's Assembly - percent of voteby party - NA; seats by party - FLN 136, RND 61, MSP 52, PT26, RCD 19, FNA 13, other 49, independents 33; Council ofNations - percent of vote by party - NA; seats by party - FLN29, RND 12, MSP 3, RCD 1, independents 3, presidentialappointees (unknown affiliation) 24; note - Council seatingreflects the number of replaced council members rather thanthe whole Council

Judicial branchSupreme Court

Political parties andleaders

Ahd 54 [Ali Fauzi REBAINE]; Algerian National Front or FNA[Moussa TOUATI]; National Democratic Rally (RassemblementNational Democratique) or RND [Ahmed OUYAHIA]; NationalLiberation Front or FLN [Abdelaziz BELKHADEM, secretarygeneral]; National Reform Movement or Islah (formerly MRN)[Ahmed ABDESLAM]; Rally for Culture and Democracy or RCD[Said SADI]; Renaissance Movement or EnNahda Movement[Fatah RABEI]; Socialist Forces Front or FFS [Hocine AitAHMED]; Society of Peace Movement or MSP [BoudjerraSOLTANI]; Workers Party or PT [Louisa HANOUNE]note: a law banning political parties based on religion wasenacted in March 1997

Political pressuregroups and leaders

The Algerian Human Rights League or LADDH [HocineZEHOUANE]; SOS Disparus [Nacera DUTOUR]

Internationalorganizationparticipation

ABEDA, AfDB, AFESD, AMF, AMU, AU, BIS, FAO, G-15, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA,IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol,IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, MONUC,NAM, OAPEC, OAS (observer), OIC, OPCW, OPEC, OSCE(partner), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR,UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO(observer)

Diplomaticrepresentation in theUS

chief of mission: Ambassador Abdallah BAALIchancery: 2118 Kalorama Road NW, Washington, DC 20008telephone: [1] (202) 265-2800FAX: [1] (202) 667-2174

Diplomaticchief of mission: Ambassador David D. PEARCEembassy: 05 Chemin Cheikh Bachir, El-Ibrahimi, El-Biar 16000


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representation fromthe US

Algiersmailing address: B. P. 408, Alger-Gare, 16030 Algierstelephone: [213] 770-08-2000FAX: [213] 21-60-7355

Flag descriptiontwo equal vertical bands of green (hoist side) and white; a red,five-pointed star within a red crescent centered over the two-color boundary; the colors represent Islam (green), purity andpeace (white), and liberty (red); the crescent and star are also

Islamic symbols, but the crescent is more closed than those ofother Muslim countries because the Algerians believe the longcrescent horns bring happiness

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Economy overview

The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% ofbudget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter; it ranks15th in oil reserves. Sustained high oil prices in recent years have helped improveAlgeria's financial and macroeconomic indicators. Algeria is running substantial tradesurpluses and building up record foreign exchange reserves. Algeria has decreased itsexternal debt to less than 5% of GDP after repaying its Paris Club and London Club debtin 2006. Real GDP has risen due to higher oil output and increased governmentspending. The government's continued efforts to diversify the economy by attractingforeign and domestic investment outside the energy sector, however, has had littlesuccess in reducing high unemployment and improving living standards. Structuralreform within the economy, such as development of the banking sector and theconstruction of infrastructure, moves ahead slowly hampered by corruption andbureaucratic resistance.

GDP (purchasing power parity) $232.9 billion (2008 est.) $225.1 billion(2007 est.) $218.3 billion (2006 est.)note: data are in 2008 US dollars


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GDP (official exchange rate)$159.7 billion (2008 est.)

GDP - real growth rate 3.5% (2008 est.)3.1% (2007 est.)2.1% (2006 est.)

GDP - per capita (PPP) $6,900 (2008 est.)$6,700 (2007 est.)$6,600 (2006 est.)

GDP - composition by sector agriculture: 8.3%industry: 62.3%services: 29.4% (2008 est.)

Labor force 9.464 million (2008 est.)

Labor force - by occupation agriculture 14%, industry 13.4%,construction and public works 10%, trade14.6%, government 32%, other 16% (2003est.)

Unemployment rate 12.5% (2008 est.)11.8% (2007 est.)

Investment (gross fixed) 26.1% of GDP (2008 est.)

Public debt 9.9% of GDP (2008 est.)


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Inflation rate (consumer prices) 4.5% (2008 est.)3.5% (2007 est.)

Stock of money $60.91 billion (31 December 2008)$55.43 billion (31 December 2007)

Stock of quasi money $30.36 billion (31 December 2008)$28.59 billion (31 December 2007)

Agriculture products wheat, barley, oats, grapes, olives, citrus,fruits; sheep, cattle

Industries petroleum, natural gas, light industries,mining, electrical, petrochemical, foodprocessing

Industrial production growth rate 3.2% (2008 est.)

Electricity production 33.12 billion KWh (2006 est.)

Electricity consumption 26.91 billion KWh (2006 est.)

Electricity exports 300 million kWh (2006 est.)

Electricity imports 382 million kWh (2006 est.)


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Oil production 2.173 million bbl/day (2007 est.)

Oil consumption 279,800 bbl/day (2006 est.)

Oil exports 1.844 million bbl/day (2005 est.)

Oil imports 13,110 bbl/day (2005 est.)

Oil - proved reserves 14.79 billion bbl (1 January 2008 est.)

Natural gas - proved reserves 4.502 trillion cu m (1 January 2008 est.)

Natural gas - production 85.7 billion cu m (2007 est.)

Natural gas - Consumption 26.3 billion cu m (2007 est.)

Natural gas - Exports 59.4 billion cu m (2007 est.)

Natural gas - Imports 0 cu m (2007 est.)

Current account balance $34.99 billion (2008 est.)$30.6 billion (2007 est.)

Exports $78.23 billion (2008 est.)

$60.6 billion (2007 est.)

Exports commodities petroleum, natural gas, and petroleumproducts 97%


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Exports partners US 23.9%, Italy 14.9%, Spain 11.1%,Canada 9.6%, France 8.6%, Netherlands4.5% (2008)

Imports$39.16 billion (2008 est.)$26.4 billion (2007 est.)

Imports commodities capital goods, foodstuffs, consumer goods

Imports partnersFrance 19.8%, Italy 10.9%, China 9%,Spain 7.6%, Germany 5.4% (2008)

Reserves of foreign exchange and gold $143.5 billion (31 December 2008 est.)$110.6 billion (31 December 2007 est.)

Debt external $2.7 billion (31 December 2008 est.)$3.957 billion (31 December 2007 est.)

Stock of direct foreign investment - athome

$13.76 billion (31 December 2008 est.)$11.91 billion (31 December 2007 est.)

Stock of direct foreign investment - atabroad

$1.162 billion (31 December 2008 est.)$962 million (31 December 2007 est.)

Exchange rates Algerian dinars (DZD) per US dollar -63.25 (2008 est.), 69.9 (2007), 72.647(2006), 73.276 (2005), 72.061 (2004)


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Telephones - main lines in use 3.314 million (2008)

Telephones - mobile cellular 27.563 million (2007)

Telephone system general assessment: a weak network of

fixed-main lines, which remains low at lessthan 10 telephones per 100 persons, ispartially offset by the rapid increase inmobile cellular subscribership; in 2007,combined fixed-line and mobile telephonedensity surpassed 90 telephones per 100personsdomestic: privatization of Algeria'stelecommunications sector began in 2000;three mobile cellular licenses have beenissued and, in 2005, a consortium led by

Egypt's Orascom Telecom won a 15-yearlicense to build and operate a fixed-linenetwork in Algeria; the license will allowOrascom to develop high-speed data andother specialized services and contribute tomeeting the large unfulfilled demand forbasic residential telephony; Internetbroadband services began in 2003 withapproximately 200,000 subscribers in 2006international: country code - 213; landingpoint for the SEA-ME-WE-4 fiber-optic

submarine cable system that provides linksto Europe, the Middle East, and Asia;microwave radio relay to Italy, France,Spain, Morocco, and Tunisia; coaxial cableto Morocco and Tunisia; participant inMedarabtel; satellite earth stations - 51(Intelsat, Intersputnik, and Arabsat) (2007)


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Radio broadcast stations AM 25, FM 1, shortwave 8 (1999)

Television broadcast stations 46 (plus 216 repeaters) (1995))

Internet country code .dz

Internet hosts477 (2008)

Internet users 3.5 million (2007)

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Airports 143 (2009)

Airports with paved runways

total: 57

over 3,047 m: 112,438 to 3,047 m: 291,524 to 2,437 m: 11914 to 1,523 m: 5under 914 m: 1 (2009)

Airports with unpaved runwaystotal: 862,438 to 3,047 m: 31,524 to 2,437 m: 19914 to 1,523 m: 41under 914 m: 23 (2009)

Heliports 2 (2009)

Pipelines condensate 1,937 km; gas 14,648 km;liquid petroleum gas 2,933 km; oil 7,579km (2008)


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Railways total: 3,973 km

country comparison to the world: 44standard gauge: 2,888 km 1.435-m gauge(283 km electrified)narrow gauge: 1,085 km 1.055-m gauge(2008)

Roadwaystotal: 108,302 kmcountry comparison to the world: 39paved: 76,028 km (includes 645 km ofexpressways)

unpaved: 32,274 km (2004)

Merchant marine total: 33country comparison to the world: 83by type: bulk carrier 6, cargo 8, chemicaltanker 1, liquefied gas 9, passenger/cargo3, petroleum tanker 4, roll on/roll off 2foreign-owned: 18 (Jordan 7, UK 11)(2008)

Ports and terminals Algiers, Annaba, Arzew, Bejaia, Djendjene,Jijel, Mostaganem, Oran, Skikda

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Military branches People's National Army (Armee NationalePopulaire, ANP), Land Forces (ForcesTerrestres, FT), Navy of the Republic ofAlgeria (Marine de la RepubliqueAlgerienne, MRA), Air Force (Al-Quwwatal-Jawwiya al-Jaza'eriya, QJJ), TerritorialAir Defense Force (2009)


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Military service age and obligation 19-30 years of age for compulsory militaryservice; conscript service obligation - 18months (6 months basic training, 12months civil projects) (2006)

Manpower available for military service males age 16-49: 9,736,757females age 16-49: 9,590,978 (2008 est.)

Manpower fit for military service males age 16-49: 8,317,473females age 16-49: 8,367,005 (2009 est.)

Manpower reaching militarily significantage annually

male: 375,852female: 362,158 (2009 est.)

Military expenditures 3.3% of GDP (2006)

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Disputes international Algeria, and many other states, rejects Moroccanadministration of Western Sahara; the PolisarioFront, exiled in Algeria, represents the Sahrawi

Arab Democratic Republic; Algeria's border withMorocco remains an irritant to bilateral relations,each nation accusing the other of harboringmilitants and arms smuggling; Algeria remainsconcerned about armed bandits operatingthroughout the Sahel who sometimes destabilizesouthern Algerian towns; dormant disputes includeLibyan claims of about 32,000 sq km still reflectedon its maps of southeastern Algeria and the FLN's


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assertions of a claim to Chirac Pastures insoutheastern Morocco

Refugees and internally displacedpersons:

refugees (country of origin): 90,000 (WesternSaharan Sahrawi, mostly living in Algerian-sponsored camps in the southwestern Algeriantown of Tindouf)IDPs: undetermined (civil war during 1990s) (2007)

Trafficking in persons: current situation: Algeria is a transit country formen and women trafficked from sub-Saharan

Africa to Europe for the purposes of commercialsexual exploitation and involuntary servitude;Algerian children are trafficked internally for thepurpose of domestic servitude or street vendingtier rating: Tier 3 - Algeria did not report anyserious law enforcement actions to punishtraffickers who force women into commercialsexual exploitation or men into involuntaryservitude in 2007; the government again reportedno investigations of trafficking of children fordomestic servitude or improvements in protectionservices available to victims of trafficking; Algeria

still lacks victim protection services, and its failureto distinguish between trafficking and illegalmigration may result in the punishment of victims oftrafficking (2008)


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Algerias hydrocarbon sector accounts for 97 percent of export revenues.

Energy OverviewProven Oil Reserves(January 1, 2009E)

12.2 billion barrels

Oil Production (2008E) 2,229 thousand barrels per dayOil Consumption (2008E) 299 thousand barrels per dayCrude Oil DistillationCapacity (2009E)

450 thousand barrels per day

Proven Natural GasReserves (January 1,2009E)

159 trillion cubic feet

Natural Gas Production(2007E)

3.03 trillion cubic feet

Natural Gas Consumption(2007E)

0.93 trillion cubic feet

Electricity InstalledCapacity (2007E)

6.5 gigawatts

Electricity Production(2007E)

33.1 billion kilowatthours

Electricity Consumption(2007E)

26.9 billion kilowatthours

Total EnergyConsumption (2007E)

1.5 quadrillion Btu*

Total Per Capita EnergyConsumption (2006E)

47.1 million Btu

Energy Intensity (2007E) 6,493 Btu per 2000$***

Environmental OverviewEnergy-Related CarbonDioxide Emissions(2007E)

93.2 million metric tons

Per-Capita, Energy-Related Carbon DioxideEmissions (2006E)

2.8 metric tons

Carbon Dioxide Intensity(2006E)

0.4 metric tons per 2000$***

Oil and Gas IndustryOrganization Sonatrach State-owned company for exploration, transport and marketing

of petroleum, natural gas and related products; Naftec Operates andmanages all refineries; Naftel Domestic product distribution; Cogiz Produces natural gas by-products.

Major Oil/Gas Ports Arzew (Algerias largest crude oil export port), Skikda, Algiers, Annaba,Oran, Bejaia, plus the Tunisian facility of La Skhirra.

Foreign CompanyInvolvement

Agip, Anadarko, BHP Billiton, BP, Cepsa, Eni, Gaz de France, GulfKeystone, Maersk, Petronas, Repsol, Rosneft, Statoil, Talisman, Total.

Major Oil Fields Hassi Messaoud, Hassi Berkine, Ourhoud, Bir Hebaa, Gassi El Agreb/Zotti,


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Menzel Ledjmet

Major Natural Gas Fields Hassi RMel, Rhourde Nouss, Rourde Nouss Sud-Est, Rhourde Adra,Rhourde Chouff, Rhourde Hamra fields.

Major Crude Oil ExportPipelines

498-mile and 511-mile parallel lines Haoud el Hamra-Arzew; 415-mile Haoudel Hamra-Bejaia; 482-mile In Amenas-La Skhirra, Tunisia; 400-mile Haoud elHamra- Skikda

Major Refineries(capacity, bbl/d)

Naftec-Skikda (300,000), Naftec-Algiers (60,000), Naftec-Arzew (60,000),Naftec-Hassi Messaoud (30,000)

* The total energy consumption statistic includes petroleum, dry natural gas, coal, net hydro, nuclear,geothermal, solar, wind, wood and waste electric power.**GDP figures from Global Insight estimates based on purchasing power parity (PPP) exchange rate

BackgroundAlgeria is an important exporter of oil and natural gas and is a member of theOrganization of the Petroleum Exporting Countries (OPEC). In 2008, Algeria produced1.42 million bbl/d of crude oil. Algeria was the fourth largest crude oil producer in Africaafter Nigeria (1.94), Angola (1.89), and Libya (1.71) and the largest total oil liquidsproducer on the continent. As a member of OPEC, Algeria's crude oil production can beconstrained by the groups crude production allocations, but Algeria also produced450,000 bbl/d of condensate and 357,000 bbl/d of natural gas liquids, which are exemptfrom OPEC quotas, bringing total oil liquids production for the year up to a total of 2.23million bbl/d. Domestic oil consumption accounted for about 13 percent of totalproduction. Algeria was the sixth largest natural gas producer in the world in 2007 after

Russia, the United States, Canada, Iran, and Norway. Algeria produced 3.03 trillioncubic feet of natural gas in 2007, of which 70 percent was exported and 30 percent wasconsumed domestically.


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OIL

Algeria is net oil exporting country and a member of the Organization ofPetroleum Exporting Countries (OPEC).

According to Oil and Gas Journal (OGJ), Algeria contained an estimated 12.2 billionbarrels of proven oil reserves as of January 2009, the third largest in Africa (behind

Libya and Nigeria). Algerias largest proven reserves are located in the eastern half ofthe country. Algerias Saharan Blend oil, 45 API and 0.1 percent sulfur content, isamong the highest quality in the world. European countries rely on Algerian oil to helpmeet increasingly stringent European Union regulations on sulfur content of gasolineand diesel fuel.

Production and DevelopmentAlgeria produced an average of 1.42 million barrels per day (bbl/d) of crude oil in 2008.Together with 450,000 bbl/d of condensate and 357,000 bbl/d of natural gas liquids,Algeria averaged 2.23 million bbl/d of total oil liquids production during 2008, up from2.17 million bbl/d in 2007. State-owned Sonatrach dominates oil and natural gasproduction in Algeria. Algeria has increasingly allowed greater foreign investment in thesectors, and foreign oil producers have entered into numerous partnership agreementswith Sonatrach.


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Sonatrach operates the largest oil field in Algeria, Hassi Messaoud. Located southeastof Algiers, Hassi Messaoud produced around 400,000 bbl/d of crude in 2008. Sonatrachhas recently awarded new contracts to increase production over the next few years bydeveloping new areas of the field and by adding a new LPG treatment plant. Other majorfields operated by Sonatrach include: Tin Fouye Tabankort Ordo, Zarzaitine, HaoudBerkaoui/Ben Kahla, and Ait Kheir. Algeria is taking steps toward maintaining its oilproduction capacity by developing new oilfields to compensate for the decline in olderfields. In an interview in Vienna in March 2009, Energy Minister Khelil said that some ofthe new capacity would replace declines in older fields, and that Algeria's long-termtarget was to maintain crude oil production capacity at its current level. Foreign oiloperators have steadily increased their share of Algeria's oil production. The largest

foreign oil producer is Anadarko, with total production capacity of more than 500,000bbl/d, from its operation at the combined Hassi Berkine South and Ourhound fields ineastern Algeria. As of the fourth quarter of 2008, Anadarko had gross oil production of422,000 bbl/d from the project. Anadarko is developing seven new oil and natural gasfields in Block 208 of the Berkine Basin; with output projected to reach 150,000 bbl/d ofcrude oil and condensate. Eni operates (among others) the Rhourde Oulad Djemma(ROD) project in southeastern Algeria, a series of six satellite fields. Eni's equityproduction at the end of 2008 was 84,000 bbl/d. Additional foreign investors include: BGGroup, BP, Cepsa, Conoco-Phillips, Eni, Gazprom, Repsol, Ruhrgaz, Shell, Statoil andTotal. In December 2008, Algeria held a licensing round for foreign development of oiland natural gas reserves. This licensing round was the first to be held under the 2006law that gives Algerian state-owned Sonatrach a mandatory minimum 51% share in

every oil and gas exploration contract awarded to foreign companies. Only four foreignfirms won oil and gas exploration permits in December, and 11 zones attracted no bids.Algerian Energy and Mines Minister Chakib Khelil blamed the weak global economy forthe mixed results of the 2008 licensing round during a signing ceremony for the fourwinning bidders, ENI, Ruhrgas, Gazprom, and BG Group PLC on January 17, 2009.Many of Algeria's latest discoveries are being made in basins near In Salah in thesouthwest, where reservoirs appear to be relatively small, and pipelines still lacking.


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Exports

Algeria is a large oil exporter. Algeria's domestic oil consumption was 299,000 bbl/d in2008 and estimated net oil exports (including all liquids) reached 1.93 million bbl/d. EIAestimates that the United States imported 547,000 bbl/d from Algeria, or 4 percent oftotal U.S. oil imports in 2008. This was 28 percent of Algeria's oil exports during 2008.According to the International Energy Agency (IEA), 34 percent of Algerias 2007 oilexports to the Organization for Economic Cooperation and Development (OECD)countries went to European countries, including the Netherlands (8 percent), France (6percent), Spain (5 percent), and Germany and the United Kingdom (4 percent each).


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Downstream

In 2009, Algeria had total refining capacity of 450,000 bbl/d. Naftec, a subsidiary of

Sonatrach, operates Algeria's four refineries.

The Skikda refinery (300,000 bbl/d) provides the bulk of Algeria's refinedproducts production.

The 30,000-bbl/d Hassi Messaoud refinery supplies products to southern Algeria,

While the 60,000-bbl/d Algiers refinery processes crude from Hassi Messaoud forconsumption in the capital.

The coastal 60,000-bbl/d Arzew refinery produces products for domesticconsumption and export.

A new refinery is projected at Tiaret, to be completed in 2013. Sonatrach said inNovember 2008 that companies interested in building this refinery had been shortlistedand tenders would be issued in July or August of 2009.


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Pipelines and Export Terminals

Algeria uses seven coastal terminals to export crude oil, refined products, liquefiedpetroleum gas (LPG) and natural gas liquids (NGL). These facilities are located atArzew, Skikda, Algiers, Annaba, Oran, Bejaia, and La Skhirra in Tunisia. Arzew handlesabout 40 percent of Algeria's total hydrocarbon exports, including all of its NGL, LPG,and oil condensate exports. Algeria's oil pipeline network facilitates the transfer of oilfrom interior production fields to the export terminals. Sonatrach operates over 2,400miles of crude oil pipelines in the country. The most important pipelines carry crude oilfrom the Hassi Messaoud field to export terminals. Sonatrach also operates oil

condensate and LPG pipeline networks that link Hassi R'mel and other fields to Arzew.Sonatrach has expanded the Hassi Messaoud-Arzew pipeline, the longest in thecountry, to include a second, parallel line that more than doubles the capacity of theexisting line. Sonatrach announced in 2008 that US$5.5 billion would be spent by 2012on renovating and extending its domestic oil and gas pipelines. Algeria's major crude oilexport pipelines are: the 498-mile Haoud el Hamra to Arzew pipeline, the parrallel 511-mile Haoud el Hamra to Arzew pipeline, the 415-mile Haoud el Hamra to Bejaia line, the482-mile In Amenas to La Skhirra, Tunisia, pipeline, and the 400-mile Haoud el Hamrato Skikda pipeline.

Algeria- Net Oil Export Revenues

2008 2009 2010Jan-Aug

2009 2008 2009 2010Jan-Aug

2009Algeria $69 NA NA $25 $56 NA NA $20Angola $68 NA NA $25 $55 NA NA $20

Ecuador $10 NA NA $4 $8 NA NA $3Iran $82 NA NA $32 $67 NA NA $26Iraq $60 NA NA $23 $49 NA NA $18

Kuwait $80 NA NA $29 $65 NA NA $23Libya $57 NA NA $21 $46 NA NA $17

Nigeria $70 NA NA $26 $56 NA NA $21Qatar $38 NA NA $14 $31 NA NA $11SaudiArabia $288 NA NA $92 $233 NA NA $74UAE $89 NA NA $31 $72 NA NA $25

Venezuela $59 NA NA $19 $48 NA NA $15

OPEC $971 $559 $675 $340 $786 $445 $529 $271

Country

Nominal ($B) Real (2000$B)


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Algeria- Per Capita Net Oil Export Revenues

2008 2009 2010

Jan-Aug

2009 2008 2009 2010

Jan-Aug

2009Algeria $2,035 NA NA $719 $1,647 NA NA $574Angola $5,404 NA NA $1,940 $4,374 NA NA $1,548

Ecuador $735 NA NA $264 $595 NA NA $211Iran $1,253 NA NA $483 $1,014 NA NA $385Iraq $2,143 NA NA $795 $1,735 NA NA $634

Kuwait $30,952 NA NA $10,803 $25,052 NA NA $8,620Libya $9,228 NA NA $3,324 $7,469 NA NA $2,653

Nigeria $505 NA NA $182 $409 NA NA $145Qatar $41,028 NA NA $14,922 $33,202 NA NA $11,908SaudiArabia $10,242 NA NA $3,226 $8,290 NA NA $2,574UAE $19,304 NA NA $6,516 $15,624 NA NA $5,199

Venezuela $2,244 NA NA $705 $1,816 NA NA $563

OPEC $2,688 $1,516 $1,797 $926 $2,176 $1,207 $1,411 $739

Country

Nominal ($) Real (2000$)

Natural Gas

Algeria is a significant producer of natural gas and liquefied natural gas (LNG).

According to Oil and Gas Journal (OGJ), Algeria had 159 trillion cubic feet (Tcf) ofproven natural gas reserves (the eighth-largest natural gas reserves in the world) as ofJanuary 2009. Algeria's largest gas field is Hassi R'Mel, discovered in 1956 and holdingproven reserves of about 85 Tcf. Hassi R'Mel accounts for about a quarter of Algeria'stotal dry natural gas production. The remainder of Algeria's natural gas reserves comefrom associated (they occur alongside crude oil reserves) and non-associated fields inthe south and southeast regions of the country.


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The country produced 3.03 Tcf of dry natural gas in 2007, and is the sixth-largest naturalgas producer in the world and the second largest among OPEC-member countries afterIran. Algeria consumed 0.93 Tcf of dry natural gas in 2007. The remaining natural gas isexported, much of it going to Europe and some to the United States. The Algerian

government has encouraged the domestic use of natural gas, which represented 60percent of the country's total energy consumption in 2007.State-owned Sonatrach dominates natural gas production and wholesale distribution inAlgeria, while state-owned Sonelgaz controls retail distribution. Algeria has increasinglyallowed greater foreign investment in the sector, and foreign gas producers, includingBHP-Billiton, BP, Eni, Repsol, Statoil and Total, have entered into numerous partnershipagreements with Sonatrach. There are also plans to allow foreign participation in theretail natural gas sector.

Domestic PipelinesAlgeria's domestic pipeline system centers on the Hassi R'Mel natural gas field. Thelargest pipeline systems connect Hassi R'Mel to liquefied natural gas (LNG) export

terminals along the Mediterranean Sea. A 315-mile, 4.38-billion-cubic-feet-per-day(Bcf/d) system connects Hassi R'Mel to Arzew, while a 360-mile, 1.98-Bcf/d systemconnects Hassi R'Mel to Skikda. A smaller pipeline (270 miles, 690 MMcfd/d) also runsbetween Hassi R'Mel and Isser, near Algiers. Hassi R'Mel is the hub of Algeria's entirenatural gas transport network, so pipelines connect to it from the country's major naturalgas-producing regions.


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Exports

Algeria's dry natural gas exports totaled 2.10 Tcf in 2007, down slightly from 2.17 Tcf in2006. Almost two-thirds of Algeria's total natural gas exports currently move through twonatural gas pipeline connections operating between Algeria and Europe; the remainingone-third of total natural gas exports is exported in the form of LNG. The 670-mile, 2.32-Bcf/d Trans-Mediterranean (Transmed, also called Enrico Mattei) line runs from HassiR'Mel, via Tunisia and Sicily, to mainland Italy. Completed in 1983 and doubled in 1994,there are plans to construct an additional compressor station along the Transmed thatcould increase capacity to 3.48-Bcf/d. An international consortium, led by Spain's

Enagas, Morocco's SNPP, and Sonatrach, operates the 1,000-mile, 820-Mmcf/dMaghreb-Europe Gas pipeline (MEG, also called Pedro Duran Farell), completed in1996, which connects Hassi R'mel via Morocco with Cordoba, Spain, where it ties intothe Spanish and Portuguese natural gas transmission networks.


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There are three new pipelines under construction or in planning:

Medgaz PipelineThe 120-mile Medgaz will link Beni Saf, Algeria to Almeria, Spain, with an eventualextension to France. The US$1.2 billion Medgaz is expected to be operating bySeptember 2009, with an initial capacity of 390 MMcfd/d, increasing to 1.55 Bcf/d.Galsi PipelineThe 560-mile Galsi pipeline will run from Gassi R'Mel to El Kal, Algeria, underwater toCagliari, Sardinia, overland to Olbia, Sardinia, and then underwater to Piombino, Italy,where it will be connected to the Italian national transfer network. The Galsi pipeline,currently under construction, will have initial capacity of 770-990 MMcfd/d and is

expected to be completed by 2012.Trans-Saharan PipelineSonatrach and the Nigerian National Petroleum Corporation aim to construct a 2,800-mile natural gas pipeline from Warri, Nigeria to Hassi R'Mel, via Niger. The pipelinewould utilize the proposed Medgaz and existing Transmed pipelines to carry Nigeriannatural gas to European markets. In February 2009, it was reported that representativesof Sonatrach and the Nigerian National Petroleum Corp. (NNPC) met in Lagos anddisclosed they were close to finalizing plans for the $12 billion project. However, theimmense length and possible sabotage are two deterrent risks to the project movingforward.

Liquefied Natural Gas

Algeria's LNG exports currently make up about one-third of the country's total naturalgas exports and are expected to increase in the mid-term, when the Skikda plant comesback online. About 898 Bcf of LNG was exported in 2007, compared with 844 Bcf in2006. Most of Algeria's LNG exports go to Europe: about 729 Bcf in 2007 compared with800 Bcf in 2006. With the start-up of the Arzew GL4Z plant in 1964, Algeria became theworld's first producer of liquefied natural gas (LNG). Algeria is the fourth largest exporterof LNG (behind Indonesia, Malaysia and Qatar), exporting around 11 percent of theworld's total in 2006. Primary customers are France, Spain, and Turkey. Sonatrach hasLNG export contracts with Gaz de France, Belgium's Distrigaz, Spain's Enagas, Turkey'sBotas, Italy's Snam, and Greece's DEPA. In 2007, Algeria supplied 13 percent of OECDEurope's LNG imports. Also in 2007, Algeria exported 77 Bcf of LNG to the United

States, some 10 percent of total U.S. LNG imports for that year. Algeria's largest LNGexport terminal is the Arzew facility, whose three facilities combined produced anestimated 1,183 Bcf of re-gasified LNG in 2007. Other important terminals includeSkikda and Algiers. However, the Skikda LNG plant is being rebuilt after an explosion in2004 and is not expected to come back online until 2013.


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Polymer Demand - (2007-08)

Polymer Sectors of Algeria

LLDPE HDPE

Product Demand Production ImportsLDPE 80 55 25

LLDPE 21 21 0

HDPE 120 95 25

PP 60 0 60

Film

74%

Others

26%

OTHER

21%

BM

19%IM

16%

Film

44%


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PP

Polymer growth in Algeria is about 6-7% per annum. Films and injection molding are themajor the major sectors of polymer consumption in Algeria. Consumption base is smallbut Algeria plans for big investments in the polymer production. Algeria is very strategicfor polymer production as cheaper feedstock is available and the proximity to Europeanmarket makes it all the more attractive. Volumes produced or consumed in Algeria isvery low, there are not very established trades operating in Algeria. Few European andEgyptian based traders are operating in Algeria. Emerude Chemie, France and PPPChemicals, Egypt are active in Algeria.

Fertilizer in Algeria

There is no fertilizer production in Algeria. However, with strong gas base andexploration, many foreign companies have shown interest and are planning to invest inAlgerian, Ammonia and Urea production.

2012

Investments are been done by the above companies (in table) and will target the exportsmarket from Algeria. Sorfert Algerie has commissioned Uhde in the supply of services

IM

19%

OTHER

18%

Film

16%

RAFFIA

47%

Company Ammonia Urea MTA

Algerian-Omani Fertilizer Co 1400000 2450000 3850000

Alzofert 660000 660000

Fertalge 420000 420000Fertial 330000 330000

Fertiberia SA 1200000 1200000

Sofert Algerie 1400000 1140000 2540000

Grand Total 4990000 4010000 9000000


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for a major fertilizer complex in Arzew, Algeria. The company is investing $2 bn in thecomplex, which will comprise two 2200 tonnes/day ammonia plants and a 3450tonnes/day urea plant. There will be numerous other facilities. Completion is due in2011. Sorfert Algerie will use urea output of over 1.1 M tonnes/y and the ammoniasurplus of 750,000 tonnes/y to mainly for the supply export markets.

India-Algeria Economic and Commercial Relations

Hydrocarbon remains the backbone of the Algerian economy. Majority of thehydrocarbon products are exported to EU countries and the US. Algeria imports almost

all its basic requirements. France, Italy, Spain and some other European countries andthe US dominate the Algerian market. India has opportunities in almost all sectors ofeconomy as the market is price sensitive Bilateral economic and commercial tiesbetween India and Algeria are steadily improving but they are still below potentials. Thebasket of Indian exports to Algeria is slowly diversifying from the traditional agriculturalexports to automobiles, iron & steel, pumps, light engineering items, pharmaceuticals,textiles, plastic material, etc.

At present there are no joint venture projects between India and Algeria. However, thereare companies which are helping Algerian entrepreneurs in setting up projects bysupplying equipment, technical inputs, know-how, training manpower etc in fields likeautomobiles, two wheelers, electronic items, pharmaceuticals telecommunications etc. Ahealthy trend of India's export to Algeria is that high value items like automobiles, steelpipes, automotive parts and pharmaceuticals form a good part of exports. In the light ofthe improved situation in Algeria and in view of the vast potential in this country Indianindustries should have greater interaction with Algeria and make use of theopportunities.

Trade MovementAlgeria- India

2006- $ 677 Mn

2006- $ 28.43 Mn


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Indian Companies investment in Algeria

There is no direct investment by any Indian company in Algeria.

IOC

IOC, Indian Oil Corporation was keen in investing in refinery and downstream inAlgerian, the only Indian company with took some steps forward for investing in Algeriahowever, they have abandoned their plan to invest in the 15-million-tonne Greenfieldrefinery in Algeria, being commissioned by Algerian state-owned Sonatrach. IOC is not

willing to join hands with Sonatrach as a minority shareholder in the project, a companysource said. Earlier, Indian Oil had expressed its interest to pick up equity in Sonatrachsnew grassroots refinery project in Algeria. It was also interested in partnering with theAlgerian firm as a long-term operator and service provider for its refinery project. IOCwas shortlisted as one of the qualified bidders for Sonatrachs refinery project. Thecompany (IOC) did not participate in the subsequent bidding process as Sonatrach wasoffering it a minority stake in the project. It was indicated that IOC would get only 35%equity stake in the project. It is understood that IOC may review its decision if Sonatrachaccepts its demand. IOC was also interested in the grassroots LAB refinery project inAlgeria, but globally surplus capacity situation make the investment unviable. IOC is,however, interested in setting up a gas-based cracker and associated polymer complexin Algeria in a joint venture with Sonatrach. Due to availability of gas, the project is

economically viable.

Arcelor Mittal Steel

Mittal steel has invested in steel plant in Algeria. They are further expanding thecapacities in Algeria.

LL II SS TT OO FF OO II LL CC OO MM PP AANN II EE SS IINN AALL GG EE RRII AA

Aabar

ABB Group Aker Kvaerner Subsea Boots and coots BP Amoco Corporation Edison Enel First Calgary Petroleums Ltd Gas de France Gazprom


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Gulf Keystone Halliburton John Wood Group Lukoil Medgaz Mitsui Patch International Petroceltic PetroChina PTTEP RAK Petroleum

Repsol YPF SA Saipem Sasol Schlumberger Oilfield Services Shell Oil Company Sonatrach Statoil Talisman Energy Inc TotalFinaElf XPD8

SS OO UU RRCC EE

Africa Energy IntelligenceAfrica Oil and GasCIA World FactbookInternational Monetary FundOil and Gas JournalPetroleum Intelligence WeeklyPlatts Oilgram NewsReuters News ServiceU.S. Energy Information AdministrationWorld Bank

OPEC

Documents

Algeria Country Profile