Algeria needs more IOC capex. Will a new oil law, promised for 2019, do the trick?
Total and Repsol have signed a 25-year contract extension at their Tin Fouyé Tabankort (TFT) wet gas field on Block 238 in Algeria’s Berkine basin. The firms, together with Algerian state giant Sonatrach, agreed on 11 June to invest $324mn, drilling 11 additional wells and installing a gas compression unit to counter low pressure at the aging field.
However the companies will see their stakes fall relative to the existing exploration and production deal which was due to expire next year. Total will remain joint operator with Sonatrach, but with 26.4% rather than the current 35%; Repsol sees its stake cut from 30% to 22.6%; Sonatrach goes from 35% to 51%.
Renewed investment is much needed: though the latest agreement aims to “maintain” output at “over 80,000 boe/d,” in reality production has halved since 2013...