Repsol, Total in US$324M deal with Algeria’s Sonatrach

0
View of the headquarter of the state energy company Sonatrach in Algiers, Algeria. (Reuters Photo)

Algerian energy giant Sonatrach on Monday signed a contract worth 324 million U.S. dollars with France’s Total and Spain’s Repsol for the development of a gas field in the south of the country.

Under the contract, Sonatrach holds a major stake of 51 percent, while 26.4 percent and 22.6 percent go to Total and Repsol respectively, a Xinhua News Agency report stated.

The 25-year contract will allow the three stakeholders to continue the exploitation of the Tin Fouye Tabankort field.

The three companies will maintain the current output of 80,000 barrels of oil equivalent (BOE) per day for six years, with the recovery of additional reserves of more than 250 million BOEs, including 29.2 billion cubic meters of dry gas.

The project was first launched in 1999 with an investment worth 1.2 billion dollars.