Algeria, TotalEnergies sign new gas contracts

Algeria's state oil company Sonatrach signed on Sunday contracts worth around $740 million with French energy giant TotalEnergies, Sonatrach said in a statement.

The deals comprise hydrocarbon contracts concerning the exploitation of TFT (Tin Fouye-Tabankort) II and TFT South fields in the desert in southeast Algeria, as well as liquefied natural gas and renewable energy contracts.

"The TFT II contract provides for development investments of around $332 million, making it possible to recover 43 billion cubic meters of gas, 4.3 million tons of condensate and 5.7 million tons of LPG," the statement said.

"The development investments of the second contract, TFT Sud, are estimated at $407 million, allowing the recovery of 11.5 billion cubic meters of gas, 1.3 million tons of condensate and 1.6 million tons of LPG," it added.

According to Sonatrach, the "combined production of the two perimeters TFT II and TFT South will exceed 100,000 barrels of oil equivalent per day by 2026 against a current production of about 60,000 barrels of oil equivalent per day".

The natural gas contract extends commitments between Sonatrach and TotalEnergies allowing them to "consolidate their commercial partnership" and "play a key role in the supply of gas to the French and European markets", it added.

The deals were signed in Algiers by Sonatrach CEO Toufik Hakkar and TotalEnergies head Patrick Pouyanne.