The impact of the Compliance Decree (Executive Decree 14-349) on Algerian industrial sites

Hydrocarbons and natural gas represent Algeria’s main source of revenue. Indeed, Algeria is the first African gas producer and 10th gas producer in the world. It is also Europe’s second largest supplier of natural gas, after Russia.

Since 2014, industrial facilities in the Oil & Gas sector have been carefully observed by the Algerian state. Several incidents led the country’s executive branch to ratify Executive Order 14-349.

The executive decree 14-349, published in the official gazette, sets the conditions for compliance of facilities and equipment related to hydrocarbon activities, and requires operators to provide an initial upgrade in terms of diagnosis and traceability.

This decree concerns more than 388 industrial sites in the fields of exploration/production, pipeline transport, liquefaction and separation, refining and petrochemicals, and distribution. The equipment covered by this decree is numerous (storage and process equipment, transport networks, lifting equipment, wells, etc.)

The Decree of Compliance (Executive Decree 14-349) requires the operator to :

• Carry out a detailed diagnosis of its facilities;
• Submit this report along with an implementation schedule for the compliance program;
• Establish a monitoring and inspection schedule;
• Prioritize interventions on high-risk facilities.

A significant amount offacility assessment work is required of operators today. In addition, at the end of the diagnostic process, the results should clearly show, in a quantitative and comprehensive manner, the following:

• Current condition of facilities and equipment;
• Potential risk factors to which these facilities and equipment are exposed;
• The level of compliance of the installations and equipment with the applicable regulations and technical standards;
• Risk classification in terms of management priorities;
• The recommended actions and thetimeframe for their implementation.

The use of a digital tool in the implementation of the Executive Decree 14-439

Faced with all these standards imposed on Algerian companies, the solution SIRFULL PowerMaint™ responds to a fundamental demand from manufacturers who needincrease their operational efficiency and pass the milestone of regulatory restrictionsThe company’s mission is to provide its customers with a complete range of services, including securing production, optimizing their inspection and maintenance operations, and ensuring compliance with regulations on all industrial sites.

SIRFULL can accompany the inspection and maintenance departments of Algerian operations in the implementation implied by the executive decree 14-349, in particular on :

• The realization of new inspection actions of equipment at risk
• Development of preventive maintenance plans
• The realization of integrity diagnostics
• Audit of maintenance management systems
• And many others.

Algeria, like many countries, is now impacted by the Coronavirus (Covid-19) pandemic. As a result, European demand for Algerian natural gas is estimated at -18% compared to last year, as noted by the Minister of Energy, Mohamed Arkab, knowing that the European market is the main customer of Algerian gas.

In order to preserve the country’s foreign currency reserves, the Algerian presidency announced on Monday that the government is preparing to cut public spending by 30% this year, due to the fall in oil prices.

The Algerian oil industry will have to face thecost reductions in the management of industrial facilities, while preserving the production rate, safety and avoiding industrial risks.

Despite its negative effects, this situation offers an opportunity to rethink products, processes and business models in order to face the unavoidable economic, social and environmental challenges.

SIRFULL can bring a decisive contribution to accompany the companies in a sustainable and deep transition, and towards more transparency in the management of their installations, via an important diagnostic work.

It is thus the wholeecosystem of the Algerian energy and process industries – operators, engineering offices, suppliers – which can be impacted by this reorganization, and SIRFULL can bring its know-how in a durable and decisive way.

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SIRFULL met the Algerian industry actors during a meeting in 2019 co-organized with GESTS Services. Back in video on this day!