Algerian state-owned oil and gas firm Sonatrach has entered an agreement 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 licence.
The new signed concession contract is valid for 25 years.
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Once the contract gets necessary approvals from the relevant Algerian authorities, Sonatrach will hold a 51% interest in the field, while Total and Repsol will respectively own 26.4% and 22.6%.
Alongside the exploitation contract, the companies also 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.”
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By GlobalDataThrough drilling and development investments, the partners will target the development of additional reserves estimated at more than 250 million barrels of oil equivalent.
The partners will maintain the current production of more than 80,000 barrels of oil equivalent per day (boe/d) for six years.
Last year, Total produced 15,000boe/d in Algeria from the TFT field, in which it currently holds a 35% interest.
