Algeria: Total Strengthens Its Cooperation with Sonatrach & Launches the Engineering Studies for a Petrochemical Project in A...
May 11 2018 - 9:17AM
Business Wire
Regulatory News:
As part of the comprehensive partnership announced in 2017,
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) has signed an agreement with
Sonatrach to launch the engineering studies for a petrochemical
project in Arzew, western Algeria.
The project includes a propane dehydrogenation (PDH) unit and a
polypropylene production unit with an output capacity of 550,000
tons per year. The project represents an investment of around
$1.4 billion by the two partners (Sonatrach 51%, Total 49%),
who are planning to start the front-end engineering and design
(FEED) this summer, subject to approval by the relevant Algerian
regulatory authorities. The facility will valorize propane,
produced in large quantities locally, by transforming it into
polypropylene, a plastic for which demand is growing strongly. It
will supply in priority the local and Mediterranean demand and
Total will be responsible for the commercialization of the rest of
the production in Europe, where it will leverage its market
expertise to the benefit of both partners.
“This project in Algeria illustrates our petrochemical growth
strategy which consists of expanding our activities from
competitively advantaged feedstock, especially derived from gas, to
take advantage of the growing global plastics demand. This
polypropylene project complements our other projects announced
recently in the United States, in the Middle-East and in Asia,
which are primarily focused on polyethylene” commented Patrick
Pouyanné, Chairman and Chief Executive Officer of Total. “It is
also an opportunity to strengthen our cooperation with Sonatrach,
by moving beyond our long-standing exploration and production
relationship to invest in the downstream together.”
Total in Algeria
Total’s exploration and production activities in Algeria date
back to 1952. In 2017, Total produced 15,000 barrels of oil
equivalent per day (boe/d) in Algeria, all of it from the Tin Fouyé
Tabankort (TFT) gas and condensate field. The Group currently holds
a 35% in interest in TFT.
In March 2018, Total started up production from the Timimoun gas
field in southwestern Algeria. The Group has a 37.75% interest in
the field, which has a production capacity of 5 million cubic
meters of gas per day (around 30,000 boe/d). Total also markets
lubricants and bitumen in Algeria.
Through the Maersk Oil acquisition, which closed on March 8,
2018, Total now holds a 12.25% interest in the El Merk, Hassi
Berkine and Ourhoud oil fields, which have a combined production
capacity of 400,000 boe/d.
In November 2017, Total also announced the acquisition of
Engie’s upstream liquefied natural gas (LNG) assets. Once closed,
this transaction will add 4.6 million tons per year to the
Group’s global LNG portfolio thanks to supply agreements with
Sonatrach.
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 employees are committed to better
energy that is safer, cleaner, more efficient, more innovative and
accessible to as many people as possible. As a responsible
corporate citizen, we focus on ensuring that our operations in more
than 130 countries worldwide consistently deliver economic, social
and environmental benefits. www.total.com
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms “Total” and “Total Group”
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
“we”, “us” and “our” may also be used to refer to subsidiaries in
general or to those who work for them.
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 TOTAL S.A. 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.
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