Total said on Monday it agreed with Algeria’s state-owned Sonatrach, Repsol and Alnaft for a new concession contract for a period of 25 years to extend the exploitation of the Tin Fouyé Tabankort (TFT) gas and condensate field.
The concession, which will become effective upon the approval by the relevant Algerian authorities, will give Total a 26.4 per cent interest alongside Sonatrach (51 per cent) and Repsol (22.6 per cent). Alnaft is the National Agency for the Valorisation of Hydrocarbon Resources. The companies have also signed a gas marketing agreement.
The partners will carry out the drilling and development investments required to develop additional reserves estimated at more than 250 million barrels of oil equivalent. These investments will allow to maintain the production of the field, which is currently over 80,000 barrels of oil equivalent per day for 6 years, Total said in a statement.
"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,” said Patrick Pouyanné, Chairman and CEO of Total.
In 2017, Total produced 15,000 barrels of oil equivalent per day (boe/d) in Algeria, all of it from the TFT gas and condensate field. The Group currently holds a 35 per cent in interest in TFT.