On Sunday, Sonatrach, Algeria’s state oil company, announced the signing of contracts with French multinational TotalEnergies, as part of an ongoing deal valued at approximately $740 million, aimed at enhancing gas production.
According to a statement released by the company, the collaboration will involve ramping up production from two Sahara desert fields located in southeastern Algeria. The increased output will be intended for export to France and other European destinations.
Additionally, the statement said that the companies also entered into a memorandum of understanding in the fields of energy transition and renewable energies.
The current contractual agreements allow the companies to exploit the Tin Fouye-Tabankort area’s TFT II and TFT South fields for the production of gas, liquefied petroleum gas (LPG), and condensate.
Sonatrach stated that the newly signed contracts on Sunday will result in a combined production of TFT II and TFT South exceeding 100,000 barrels of oil equivalent per day by 2026.
This increase is anticipated compared to the current production level of approximately 60,000 barrels of oil equivalent.
The statement further noted that the agreements between Sonatrach and TotalEnergies also encompass extensions of commitments for the purchase and sale of liquefied natural gas (LNG). However, specific figures were not provided.
According to the statement, the newly signed contracts will empower both companies to assume a significant role in the supply of gas to the French and European markets.
Sonatrach CEO Toufik Hakkar and TotalEnergies head Patrick Pouyanné signed the agreements in Algiers.