Algeria: TotalEnergies Signed a New Production Sharing Contract with Sonatrach in the Berkine Basin

Rhea-AI Summary

TotalEnergies (Paris:TTE) has signed a 25-year extension of its Production Sharing Contract with Sonatrach, Occidental, and Eni for onshore Blocks 404a and 208 in the Berkine basin, Algeria. This agreement, under the new Algerian Hydrocarbon Law, aims to develop additional hydrocarbon resources and reduce carbon intensity. The partnership will also explore the potential for gas resource development to enhance export capabilities to Europe. This contract represents a strategic step in TotalEnergies' commitment to low-cost oil production while focusing on carbon reduction.

Positive

• 25-year contract extension in Berkine basin enhances long-term operational stability.
• Potential to develop additional hydrocarbon and associated gas resources, increasing export capacity to Europe.
• Alignment with carbon reduction initiatives supports sustainability goals.

Negative

• None.

PARIS--(BUSINESS WIRE)-- Regulatory News:

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) signed today with Sonatrach, Occidental and Eni an extension of its Production Sharing Contract for a period of 25 years for onshore Blocks 404a and 208 in the Berkine basin, in Eastern Algeria.

This contract, signed under the new Algerian Hydrocarbon Law published in 2019, will allow to develop additional liquids hydrocarbon resources, while reducing these fields carbon intensity through a dedicated carbon reduction program. The opportunity to develop and valorize associated gas resources will be studied by the partners, thus increasing export potential towards Europe.

“This new contract on Berkine asset, under the Algerian new Hydrocarbon Law, marks a new milestone in the strategic partnership with Sonatrach. This project is in line with the Company’s strategy to develop low-cost oil while contributing to carbon reduction programs to minimize our carbon footprint”, commented Laurent Vivier, Senior Vice President Middle East and North Africa, Exploration & Production at TotalEnergies.

TotalEnergies in Algeria

TotalEnergies has been a historic player in the energy sector in Algeria. The Company is active in oil and gas exploration and production, as well as in liquefied natural gas through supply contracts with Sonatrach. The Company is also active in the marketing of lubricants and bitumens. In addition, TotalEnergies and Sonatrach have launched engineering studies for a petrochemical project in Western Algeria. In 2021, the Company's 51 000 boe/d production in Algeria came from TotalEnergies' interests in the TFT II and Timimoun gas fields and the oil fields in the Berkine basin (Blocks 404a and 208).

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About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

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Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).

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TotalEnergies

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Source: TotalEnergies

FAQ

What is the significance of the recent contract signed by TotalEnergies (TTE) in Algeria?

The contract extends TotalEnergies' Production Sharing Contract for 25 years, enabling the development of additional hydrocarbons and promoting carbon reduction.

How will the contract extension impact TotalEnergies' operations in Algeria?

The extension allows TotalEnergies to explore new resources in Blocks 404a and 208, enhancing operational stability and export potential.

What are the environmental commitments associated with TotalEnergies' new contract in Algeria?

TotalEnergies aims to reduce carbon intensity through dedicated carbon reduction programs as part of the new contract.

What companies are involved in the recent TotalEnergies (TTE) contract in Algeria?

The contract involves TotalEnergies, Sonatrach, Occidental, and Eni.

What is the duration of the new Production Sharing Contract for TotalEnergies (TTE)?

The new Production Sharing Contract is for a duration of 25 years.