French Highlights LNG & GAS Mena Oil and Gas

France’s Total agrees TFT satellite natural gas field deal with Algeria’s Sonatrach

France's Total agrees TFT satellite natural gas field deal with Algeria's Sonatrach

France’s Total has agreed with Algeria’s state-owned Sonatrach to develop a satellite field to the major Tin Fouye Tabankort (TFT) field in southeastern Algeria.

First natural gas from the TFT Sud project is expected in late 2021, the companies said Sunday, representing a further boost to Algeria’s upstream sector as the country looks to offset maturing production elsewhere.

Production at TFT Sud is scheduled to begin at a rate of 1.8 million cu m/day, reaching a plateau of 3 million cu m/day in 2023, Sonatrach said.

The $400 million development — with reserves estimated at 108 million barrels of oil equivalent — is part of a comprehensive partnership pact signed by Total and Sonatrach in 2017. It also follows an agreement in June this year between Sonatrach, Total and Spain’s Repsol to extend the production contract for the TFT field for a further 25 years.

Under the new project — in which Sonatrach will hold a 51% stake and Total 49% — the TFT Sud development will be tied back to the existing TFT gas treatment unit by a 22 km pipeline.

“Developing the TFT satellite will help us to better exploit the facilities at TFT,” Total CEO Patrick Pouyanne said at a signing ceremony.

During the ceremony, Sonatrach and Total also signed a shareholder pact to create a new petrochemicals joint venture called STEP designed to develop a new petrochemical project in Arzew.

“Cooperation with Sonatrach has expanded significantly,” Pouyanne said.


Sonatrach CEO Abdelmoumen Ould Kaddour said the two companies also discussed possible offshore developments and two prospects in particular: East of Skikda and West of Mostaganem.

“We hope before the end of the year to sign an agreement to start drilling work,” he said, adding that Sonatrach had also held talks on offshore developments with Italy’s Eni.

Ould Kaddour also said Sonatrach and Total hoped to conclude LNG supply contract renewals by the end of 2018.

Sonatrach has three LNG supply contracts with France’s Engie — whose LNG business Total bought in June this year for $1.5 billion.

The contracts, which expire in 2019, are for a total of 7.5 million mt/year of LNG.

“The LNG sales and purchase contracts with Total are under discussion and logically we will renew all the contracts before the end of the year,” Ould Kaddour said.

Source: Illies Sahar

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