TotalEnergies Inks Hydrocarbons MoU, Expanding Partnership with Sonatrach

Global energy major TotalEnergies has signed a memorandum of understanding (MoU) with the Algerian state-owned oil and gas company Sonatrach.

TotalEnergies said in a media release that the MoU paves the way toward concluding a hydrocarbon contract in the north-east Timimoun region. The deal contract falls under the aegis of Law n°19-13 governing hydrocarbon activities.

According to TotalEnergies, this memorandum of understanding outlines the realization of a work program for the appraisal and development of gas resources in the North-East Timimoun region, in synergy with existing processing facilities for production from the Timimoun field, to reduce costs and emissions.

"This Memorandum of Understanding reflects our shared willingness to expand our strategic partnership with Sonatrach", said Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies.

Earlier this year, TotalEnergies and Sonatrach agreed an extension of their collaboration within the liquefied natural gas (LNG) sector, prolonging their contractual partnership until 2025. This agreement entails Sonatrach providing two million tons of LNG to TotalEnergies at the Fos-Cavaou terminal, located close to Marseille, in 2025. TotalEnergies outlined in its release that this “will contribute directly to the security of energy supply in France and Europe”.

In Algeria, TotalEnergies is engaged in oil and gas exploration and production. The company operates within various fields including Tin Fouyé Tabankort, Timimoun gas fields, and the Berkine Basin oil fields (Blocks 404a and 208). Additionally, it is involved in the liquefied natural gas sector through supply agreements with Sonatrach.

Notably, in 2023, the company achieved a production rate of 51 kboe/d (thousand barrels of oil equivalent per day) in Algeria from its operations in TFT II, Timimoun gas fields, and Berkine Basin oil fields (Blocks 404a and 208).

Moreover, TotalEnergies Lubrifiants Algérie SPA and TotalEnergies Bitumes Algérie SPA handle the marketing of lubricants and bitumen downstream.

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