The development of the Erg Issouane gas field represents an investment of around $400m. Credit: barrio dude.

Total has entered an agreement with Sonatrach and Alnaft to co-develop Erg Issouane gasfield in Algeria through a new concession contract.

The company signed the deal as part of the comprehensive partnership with Sonatrach announced last year.

The gasfield is located on the TFT Sud permit, south of the Tin Fouyé Tabankort (TFT) gas and condensate field, which Total holds a 35% interest in.

Under the agreement, Total will have a 49% interest in the project, while Sonatrach will take the remaining 51%.

The firms will focus on development of the reserves of Erg Issouane, which are estimated to be in excess of 100 million barrels of oil equivalent (boe). The aim is to achieve the first gas in 2021.

According to Total, around $400m is required for the development, which will be tied-back to the existing TFT gas treatment unit by a 22km-long gas pipeline.

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“The reserves of Erg Issouane are estimated to be in excess of 100 million barrels of oil equivalent.”

The deal also involves a gas marketing agreement. The concession contract is conditional on receipt of approval from the Algerian authorities.

Additionally, Total and Sonatrach signed a shareholder agreement to establish a joint venture known as Sonatrach Total Entreprise Polymères (STEP) to undertake a joint petrochemical project in Arzew, western Algeria.

Total chairman and CEO Patrick Pouyanné said: “Today’s agreements mark a new milestone in the development of the strategic partnership between Sonatrach and Total to continue developing the country’s gas reserves by providing the best of our technological expertise.”

Last year, Total produced 15,000boe/d from the TFT field.

Alnaft is Algeria’s national agency for the valorisation of hydrocarbon resources.