The first was on increasing production at Tin Fouyé Tabankort (TFT). The two companies agreed to convert the TFT II and TFT Sud contracts to the new hydrocarbon law, which Algeria passed in December 2019.
otalEnergies has signed a number of deals affirming its partnership with Sonatrach, with a particular focus on supplying gas to Europe.
The French company’s chairman and CEO Patrick Pouyanné visited Algiers on July 9 and signed the agreements with Sonatrach head Toufik Hakkar.
The first was on increasing production at Tin Fouyé Tabankort (TFT). The two companies agreed to convert the TFT II and TFT Sud contracts to the new hydrocarbon law, which Algeria passed in December 2019.
This agreement unlocks new investments. The companies will upgrade existing facilities and drill more wells, with the aim of increasing production from 60,000 barrels of oil equivalent per day to 100,000 boepd by 2026.
More production from TFT will potentially increase exports from Algeria to Europe.
Sonatrach reported the deal would involve investment of $332 million into TFT II. This would involve the additional recovery of 43 billion cubic metres of gas, 4.3 million tonnes of condensate and 5.7mn tonnes of LPG.
The companies will also invest $407mn in TFT Sud. This will see the production of 11.5 bcm of gas, 1.3mn tonnes of condensate and 1.6mn tonnes of LPG.
LNG supplies
The second agreement focused on the issue of gas supplies. The existing LNG deal for the supply of 2 million tonnes per year was due to expire this year.
Under the new deal, it will run until 2024, with supplies going to Fos-Cavaou, near Marseille. The contract started in 1972.
“I am delighted to sign these new agreements with our strategic partner Sonatrach. They testify to TotalEnergies’ close ties to Algeria, whose resources contribute directly to Europe’s energy supply and security,” said Pouyanné.
“We are also delighted to be able to support Algeria in its energy transition and in the development of its huge potential for renewable energy production.”
