Sonatrach and Total have inked two agreements as part of a comprehensive partnership announced in 2017. One is a new concession contract to jointly develop the Erg Issouane gas field located on the TFT Sud permit. The other is a shareholder agreement to create a joint venture known as STEP (Sonatrach Total Entreprise Polymères).
The TFT Sud permit is located south of the Tin Fouyé Tabankort (TFT) field, of which Total is a long-standing partner. Sonatrach (51%) and Total (49%) will develop the reserves of Erg Issouane located on the TFT Sud permit estimated at more than 100 million barrels of oil equivalent (boe). The development, which represents an investment of around $400m, will be tied back to the existing TFT gas treatment unit by a 22-kilometer-long gas pipeline. First gas is expected late 2021. The partners have also signed a gas marketing agreement. The concession contract will become effective upon approval by the Algerian authorities.
STEP will be responsible for carrying out a joint petrochemical project in Arzew, western Algeria. The project includes a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 tons per year. The two partners Sonatrach (51%) and Total (49%) are planning to start the front-end engineering and design (FEED) from November. This project will allow to valorise the propane, produced in large quantities locally, by transforming it into polypropylene, a plastic for which demand is growing strongly.
For more information visit: www.total.com
8th October 2018
