French oil major TOTAL SA said Oct. 7 that it signed two deals with Sonatrach to jointly develop the Erg Issouane gas field and to establish a joint venture for a petrochemical project in Arzew in western Algeria.
In the first agreement, Total and the National Agency for the Valorization of Hydrocarbon Resources, or Alnaft, agreed to jointly develop the Erg Issouane gas field located in the TFT Sud permit south of the Tin Fouyé Tabankort field in Algeria.
The investment amount is pegged at $400 million with first gas expected by late 2021. Sonatrach holds a 51% interest in the project while Total owns the remaining 49%. The contract will be effective following approval from Algerian authorities.
The second agreement calls for the establishment of a joint venture called Sonatrach Total Entreprise Polymères, which is tasked to carry out a joint petrochemical project in Arzew in western Algeria.
The project will include a dehydrogenation unit and a polypropylene production unit that has an output capacity of 550,000 tons per year. Front-end engineering and design is expected to start in November. Sonatrach has a 51% stake in the project, while Total holds the remaining 49%. The investment amount was not disclosed.