TotalEnergies and Sonatrach Forge $740 Million Deals to Boost Production in Algerian Sahara Fields

Algiers, Algeria – Oil and gas giant TotalEnergies, in partnership with Algeria’s national oil company Sonatrach, has finalized agreements worth a total of $740 million. The deals aim to ramp up production in two Sahara Desert fields located in southeastern Algeria, with the goal of exporting the increased output to France and other European markets.

The signed agreements mark a significant milestone in the collaboration between TotalEnergies and Sonatrach, as they strive to enhance production levels in the TFT II and TFT South fields. Currently, the combined daily production from these fields stands at approximately 60,000 barrels of oil equivalent (BOE). However, the newly signed contracts aim to elevate this figure to over 100,000 BOE per day by 2026.

The contracts were formally inked during a meeting between TotalEnergies’ Chairman and CEO, Patrick Pouyanné, and Sonatrach’s CEO, Toufik Hakkar, held in Algeria’s capital city of Algiers on Sunday. This signifies the commitment of both companies to maximize the potential of the Sahara Desert fields and optimize their hydrocarbon resources.

Sonatrach highlighted that the TFT II contract, pertaining to the Tin Fouye-Tabankort area, involves development investments amounting to $332 million. These investments will enable the recovery of substantial quantities of natural gas, including 43 billion cubic meters, along with 4.3 million tons of condensate and 5.7 million tons of liquefied petroleum gas (LPG). The increased production from these resources will contribute to meeting the growing energy demands of both domestic and international markets.

The partnership between TotalEnergies and Sonatrach exemplifies the mutual interests of the two companies to harness Algeria’s significant oil and gas reserves. The enhanced production capacity from the Sahara Desert fields will not only bolster energy exports to Europe, particularly France, but also drive economic growth and secure valuable energy supplies for the region.

The successful implementation of these agreements will pave the way for increased investment, technological advancements, and operational efficiencies in Algeria’s oil and gas sector. Furthermore, it signifies the continued commitment of TotalEnergies and Sonatrach to optimize production and unlock the full potential of Algeria’s hydrocarbon resources in the Sahara Desert fields.

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