French energy major TotalEnergies and Algerian government-backed oil company Sonatrach have signed a series of deals to boost their cooperation in the energy sector.
The agreements cover Algeria’s natural gas production, the export of liquefied natural gas (LNG) to Europe, and the growth of renewable energy sources in Algeria.
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As per the first agreement, the companies will convert the production contracts for the Tin Fouyé Tabankort II (TFTII) and Tin Fouyé Tabankort Sud (TFT sud) fields to be in accordance with the new Algerian Petroleum Law implemented in December 2019.
The deal, which is subject to approval from Algerian regulators, will see TotalEnergies and Sonatrach upgrade the existing facilities and drill additional wells to boost production from the fields.
Located in Southern Algeria, Sonatrach has a controlling 51% stake in the TFTII and TFT sud fields and TotalEnergies holds the remaining 49% stake.
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By 2026, it is anticipated that the total output of the two fields will reach 100,000 barrels of oil equivalent per day (boepd), up from a level of about 60,000boepd in 2022.
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By GlobalDataUnder the second agreement, the companies have agreed to extend the LNG supply deal for 2024, which will see Sonatrach supply two million tonnes of LNG annually to TotalEnergies at the port of Fos-Cavaou, near Marseille, France.
In accordance with the third agreement, TotalEnergies and Sonatrach will work together to develop renewable energy projects in Algeria.
These include initiatives to solarise oil and gas exploration and production facilities, a prospective study of renewable, low-carbon hydrogen for export and a research and development (R&D) project on the energy transition and low-carbon energy sources.
TotalEnergies chairman and CEO Patrick Pouyanné said: “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.”
