A new extension deal has been struck by partners Total, Sonatrach and Repsol to extend the drilling and development of the Tin Fouyé Tabankort (TFT) gas and condensate field in Algeria….
The agreement will give Total a 26.4% interest alongside Sonatrach (51%) and Repsol (22.6%).
Total confirmed today that the extension allows the partnership group to invest in producing an estimated 250 million remaining barrels of oil equivalent.
The field currently produces more than 80,000 barrels of oil equivalent per day and has done so for the last six years.
The deal will be effective upon the approval of the Algerian Authorities.
Patrick Pouyanné, chairman and CEO of Total, 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.”
Last year, Total agreed a pact with Sonatrach, Algeria’s state energy company in a bid to strengthen the partnership between the two companies and settle “outstanding differences”.
In earlier disputes between the firms, Total had sought arbitration against Algeria for changing profit-sharing terms on oil and gas contracts in the mid-2000s.
Total pledged to work with Sonatrach on new upstream projects, including the Timimoun natural gas project, which is expected to produce around 1.6 billion cubic meters of natural gas per year at plateau.
In May 2018, Total signed an agreement with Sonatrach to launch engineering studies for a petrochemical project in Arzew, western Algeria.