LogIn LogOut

Total, Sonatrach Strengthen Cooperation in Natural Gas

October 7, 2018

Map: Total
Map: Total

French energy group Total and Algerian state-owned firm Sonatrach have signed new agreements, including a contract to develop the Erg Issouane gas field and plans to create a joint venture.

The new concession contract to jointly develop the Erg Issouane gas field located on the TFT Sud permit, signed by Sonatrach, Total and Alnaft (the National Agency for the Valorization of Hydrocarbon Resources).

The TFT Sud permit is located south of the Tin Fouyé Tabankort (TFT) field, of which Total is a long-standing partner. Sonatrach (51%) and Total (49%) will develop the reserves of Erg Issouane located on the TFT Sud permit estimated at more than 100 million barrels of oil equivalent (boe).

The development, which represents an investment of around $ 400 million, will be tied back to the existing TFT gas treatment unit by a 22-kilometer-long gas pipeline. First gas is expected late 2021. The partners have also signed a gas marketing agreement. The concession contract will become effective upon approval by the Algerian authorities.

The companies also signed shareholder agreement to create a joint venture known as STEP (Sonatrach Total Entreprise Polymères).

STEP will be responsible for carrying out a joint petrochemical project in Arzew, western Algeria. The project includes a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 tons per year.

The two partners (Sonatrach 51%, Total 49%) are planning to start the front-end engineering and design (FEED) from November. This project will allow to valorize the propane, produced in large quantities locally, by transforming it into polypropylene, a plastic for which demand is growing strongly.

 “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,” said Patrick Pouyanné, Chairman and CEO of Total.

Categories: Contracts Energy


Current News

Iran's South Pars Field Tops 700 MCM/Day Output

Iran's South Pars Field Tops 700 MCM/Day Output

Chinese Refiners Buy Rare North Sea, Guyana Crude at Low Prices

Chinese Refiners Buy Rare North Sea, Guyana Crude at Low Prices

Tankers Carrying U.S. LNG Heading to China After Tax Waivers Granted

Tankers Carrying U.S. LNG Heading to China After Tax Waivers Granted

Australia: Shell Postpones Crux Project FID

Australia: Shell Postpones Crux Project FID

Total Sells Brunei, Sierra Leone, and Liberia Assets for $400M+

Total Sells Brunei, Sierra Leone, and Liberia Assets for $400M+

Petrofac Confirms Capex, Jobs, Salaries Cuts

Petrofac Confirms Capex, Jobs, Salaries Cuts

Pertamina Q1 Oil Output Slightly Below Target

Pertamina Q1 Oil Output Slightly Below Target

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com