Total To Become Top Algeria Producer In $9bn Oxy Side Deal

With Anadarko’s board approving the firm’s $57bn sale to Oxy on 9 May, an $8.8bn side deal for the sale of Anadarko’s African assets to Total enters effect. These include operators’ stakes in two of Algeria’s biggest oil fields.

Two years ago Total’s Algeria production was low and falling. The company’s only stake was 35% of the aging Tin Fouye Tabankort (TFT) wet gas field where output has fallen from a peak of 680mn cfd in 2011 to just 400mn cfd for 2017 – netting Total a measly 15,000 boe/d, three-quarters gas ( MEES, 23 March 2018 ).

But from that trough, the company’s Algeria output was already set to rise. Development was well advanced at the 1.8bcm/y (175mn cfd)  Timimoun gas field (Total 37.75% and operator), which finally came online early last year ( MEES, 2 March 2018 ).

And Total had already taken a key decision that was to see its net Algeria output more than triple to 47,000 boe/d for 2018 – the $7.5bn purchase of the upstream assets of Denmark’s Maersk, in a deal struck in August 2017 ( MEES, 25 August 2017 ) but which became effective on 8 March 2018. The move also shifted the focus of Total’s Algerian portfolio from gas to oil. (CONTINUED - 979 WORDS)

DATA INSIDE THIS ARTICLE

chart Total Algeria Liquids Output To Hit 100,000 B/D On Anadarko Deal Completion (‘000 B/D, Net)