Algerian state-owned oil and gas firm Sonatrach has signed new concession contract with Total, Repsol and Alnaft (the National Agency for the Valorisation of Hydrocarbon Resources) to extend the Tin Fouyé Tabankort (TFT) gas and condensate field license.
Upon securing necessary approvals from the relevant Algerian authorities for the 25-year concession contract, Sonatrach will hold a 51% interest in the field, while Total and Repsol will respectively own 26.4% and 22.6%.
Additionally, the companies signed a gas marketing deal.
Total chairman and CEO Patrick Pouyanné said: “Today’s agreements mark a new milestone in the implementation of the comprehensive partnership agreement signed between Sonatrach and Total in April 2017, and strengthen the strategic cooperation between the two companies.
“As a historical partner of the TFT field, Total will continue to provide the best of its technological expertise to keep developing the reserves of this gas field.
“This project is in line with the Group’s strategy to grow its gas production in competitive conditions.”
By undertaking drilling and development investments, the partners plan to develop additional reserves estimated at more than 250 million barrels of oil equivalent at the TFT gas field.
Total said that the investments will allow maintaining the field’s production, which is currently over 80,000 barrels of oil equivalent per day for six years.
Last year, Total produced 15,000boe/d in Algeria from the TFT field. The firm currently holds a 35% interest in the field.
Earlier this year, Total signed an agreement with Sonatrach to commence engineering studies for the proposed $1.4bn petrochemical project in Arzew, western Algeria.
The project forms part of a comprehensive agreement signed by Total with the Algerian state-owned oil company in April 2017 to strengthen their existing partnership.
Total will own 49% stake in the Arzew petrochemical project while Sonatrach will own the remaining 51% interest.