BY: Hana Saada
ALGIERS- In a groundbreaking announcement, the Algerian state-owned oil company, Sonatrach, has officially sealed a lucrative contract valued at 08 billion Algerian dinars. The agreement, signed in conjunction with TotalEnergies under the umbrella of the TFT group, marks a pivotal moment in Algeria’s energy sector. This significant deal focuses on the production of 11 new gas wells, promising to fortify the nation’s position as a formidable player in the global energy landscape.
On Tuesday, Sonatrach unveiled the details of this monumental contract, which represents a milestone collaboration between Sonatrach, TotalEnergies, and the National Petroleum Works Company (ENGTP). The scope of this transformative project involves the expansion and enhancement of the TFT II collection network. Specifically, it encompasses the connection and production of eleven new wells, which will integrate seamlessly with the existing processing center at the TFT gas field, strategically located in the Illizi basin. The Illizi basin lies approximately 400 kilometers southeast of Hassi Messaoud, a pivotal hub in Algeria’s oil and gas industry.
In a statement, Sonatrach emphasized the comprehensive nature of this engineering, procurement, and construction (EPC) contract. The project includes meticulous detailed engineering studies, the procurement of essential equipment and materials, the establishment of a robust collection network, the deployment of flowlines, and the construction of vital surface installations for the associated wells. This holistic approach ensures that every aspect of the gas well production process is meticulously planned and executed to meet the highest industry standards.
The financial magnitude of this contract, totaling 08 billion Algerian dinars, underscores the importance of the endeavor. The agreed-upon timeline for completion is set at 24 months, during which the TFT group will work relentlessly to achieve ambitious production targets. In the initial phase, the project aims to realize a remarkable gas production output of approximately 9 million cubic meters per day. This increase in production capacity is poised to significantly bolster Algeria’s position as a reliable and substantial contributor to the global energy market.
This landmark collaboration between Sonatrach, TotalEnergies, and ENGTP not only reaffirms Algeria’s commitment to the development of its energy sector but also highlights the nation’s strategic vision for securing a sustainable energy future. With this contract, Algeria demonstrates its continued dedication to optimizing its vast natural resources for the benefit of its citizens and the global community.
As the project moves forward, it promises to create numerous employment opportunities, foster technological advancements, and significantly boost the nation’s economic prosperity. Sonatrach and its partners remain committed to realizing these goals while maintaining a steadfast focus on environmental sustainability and responsible energy development.
In conclusion, the signing of this 08-billion-dinar contract for the production of 11 new gas wells is a momentous event in the history of Algeria’s energy sector. The collaboration between Sonatrach, TotalEnergies, and ENGTP reflects a shared commitment to innovation, growth, and environmental responsibility. As the Illizi basin continues to evolve into a powerhouse of gas production, Algeria takes yet another stride towards securing its place as a key player in the global energy arena.
