ALGERIA: TotalEnergies and Sonatrach have inked a Memorandum of Understanding (MoU) to finalise a hydrocarbon contract in the north-east Timimoun region in Algeria — under the auspices of Law n°19-13 governing hydrocarbon activities.
The MoU outlines a work program for the appraisal and development of gas resources in the North-East Timimoun region.
The plan aims to synergise with existing processing facilities for production from the Timimoun field, with the dual objectives of reducing costs and emissions.
TotalEnergies – Exploration & Production – Senior Vice President Middle East & North Africa Julien Pouget remarked: “This Memorandum of Understanding reflects our shared willingness to expand our strategic partnership with Sonatrach.”
This development follows an extension of cooperation earlier this year between TotalEnergies and Sonatrach in the field of liquefied natural gas (LNG).
The extended contractual relationship until 2025 will see Sonatrach delivering two million tonnes of LNG to TotalEnergies at the port of Fos-Cavaou, near Marseille, in 2025.
This delivery is expected to contribute directly to the security of energy supply in France and Europe.
TotalEnergies has been a longstanding player in the Algerian energy sector, active through various subsidiaries.
The company is involved in oil and gas exploration and production, with interests in the Tin Fouyé Tabankort and Timimoun gas fields, as well as the Berkine Basin oil fields (Blocks 404a and 208).
TotalEnergies is also engaged in liquefied natural gas through supply contracts with Sonatrach.
In 2023, TotalEnergies produced 51 kboe/d (group share) in Algeria through its interests in the TFT II and Timimoun gas fields, and in the Berkine Basin oil fields (Blocks 404a and 208).
Downstream, TotalEnergies Lubrifiants Algérie SPA and TotalEnergies Bitumes Algérie SPA market lubricants and bitumen.
This integrated model ensures synergies between the various activities, providing a comprehensive offering based on innovation, complementarity, and value creation.
TotalEnergies stated that the company remains committed to supporting economic development in Algeria through new investment programs that contribute to the country’s development.
Sonatrach is Algeria’s state-owned oil and gas company, founded in 1963 and Africa’s largest company with 154 subsidiaries.
In 2022, its export revenues soared by 75 per cent to $35 billion.
Sonatrach operates major fields like Hassi Messaoud and Hassi R’Mel, producing 440,000 and 180,000 barrels per day, respectively.
It manages over 3,900 km of crude oil pipelines and is expanding the Hassi Messaoud-Arzew pipeline.
Sonatrach has also diversified into petrochemicals and seawater desalination and employs over 200,000 people directly and through its subsidiaries.
