Algeria’s state-owned company Sonatrach has announced that it signed a new contract with its TFT group partners, French TotalEnergies and Algeria Entrprise Nationale de Grands Travaux Pétroliers (ENGTP), regarding the Tin Fouyé Tabankort II (TFT) gas field in Algeria.

The Engineering, Procurement, and Construction contract (EPC) covers the extension of the collection network of TFTII, for the purpose of connecting and putting on stream 11 new wells towards the existing processing center at the TFT gas field located in the Illizi Basin at 400 km South-East Hassi Messaoud.

With an amount of 8 billion Dinars ($58.367mln), this EPC contract which will be completed within 24 months, should enable the GTFT to produce 9 million cubic meter per day (mmcm/d) in the first phase, according to the press release.

The services covered by the EPC contract include detailed engineering studies, equipment and materials procurement, collection network construction, flowlines, and construction of surface facilities for the connected wells.

In July 2023, Algeria’s Sonatrach signed $740 million contracts with TotalEnergies, including hydrocarbon deals related to the exploitation of the TFTII and TFT South fields in the desert in southeastern Algeria, in addition to contracts for liquefied natural gas and renewable energy, stated Sonatrach in another press release.

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

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 per day.