Petroleum Africa
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Monday, July 10, 2023
Several agreements were signed between TotalEnergies and Algeria’s state energy firm Sonatrach to strengthen the cooperation between the two companies in the production of natural gas in Algeria, the delivery of liquefied natural gas (LNG) to Europe, as well as the development of renewables in the North African country.
The agreements were signed on July 9 in Algiers during a meeting held between Patrick Pouyanné, Chairman and CEO of TotalEnergies, and Toufik Hakkar, Chief Executive Officer of Sonatrach.
Highlights of the Agreement
Under a first agreement, which remains subject to the approval of the Algerian authorities, SONATRACH and TotalEnergies have agreed to convert the production contracts for the Tin Fouyé Tabankort II (TFTII) and Tin Fouyé Tabankort Sud (TFT sud) fields in southern Algeria (Sonatrach 51%, TotalEnergies 49%) to the framework established by the new Algerian Petroleum Law enacted on December 11, 2019.
In this context, SONATRACH and TotalEnergies will pursue the investment program already launched to increase the gas production of TFTII and TFT South, which includes the upgrade of existing facilities and the drilling of additional wells. The combined production of the two fields is expected to exceed 100,000 boe per day by 2026, versus a level of around 60,000 boe per day in 2022, thus increasing the potential export of Algerian gas to the European market.
Under a second agreement, Sonatrach and TotalEnergies have extended for the year 2024 deliveries by SONATRACH of 2 million tons per year of LNG to TotalEnergies at the port of Fos-Cavaou, near Marseille, France. These deliveries of Algerian liquefied natural gas contribute directly to energy security in France and Europe.
Under a third agreement, TotalEnergies and SONATRACH will cooperate to develop renewable energy projects in Algeria, specifically:
“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. 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,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
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