Our operations in Algeria
[TOTAL IN ALGERIA]
[Jean-Pascal Clémençon, Managing Director Total E&P Algérie – Country Chair]
Jean-Pascal Clémençon: Total's activities here cover the entire Oil & Gas value chain. Our collaboration with Sonatrach has developed very significantly over the past two years. In April 2017, we signed a global agreement and since then we have signed a host of new agreements.
[EXPLORATION & PRODUCTION]
[Elias Kassis, Vice President North Africa – Exploration & Production]
Elias Kassis: In 2017, the Group's gas production in Algeria was 15,000 BOEs per day. In 2019, two years later, our production is, in the region, of 70,000 BOEs per day. The Timimoun field entered production in February 2018, TFT was renewed with a new 25-year contract giving this field a second life and October 2018 saw the signing of another TFT Sud contract, at Erg Issaoune.
Jean-Pascal Clémençon: The Group has acquired Maersk Oil which enabled us to enter the fields of El Merck, Berkine and Ouroud and thus to complete our gas activity with an oil production activity.
Elias Kassis: And we are taking it further as we also envisage offshore exploration which will be a first with Sonatrach and our partner ENI and is perfectly in keeping with our value: Pioneer Spirit.
[MARKETING & SERVICES]
Jean-Pascal Clémençon: Total has a more recent presence here - since the early 2000s - in Marketing and Services, with the distribution of Bitumen in 1999 and Lubricants in 2003.
[Stéphane Talleneau, Managing Director Total Lubrifiants & Total Bitumes Algérie]
Stéphane Talleneau: We sell around 90,000 tons of bitumen for a 15% market share. In Lubricants, we sell around 31,000 tons for a market share of around 18%. Lastly, we operate a network of 110 Total Quartz auto service centers and we inaugurated the first Total Truck Centre - Total Rubia Truck Centre - in the region of Algiers, at Blida, in late 2018. The structuring project for Total Lubricants Algeria is the construction of our blending plant at the Arzew Bethiouia industrial zone near Oran. It's a blending plant of 40,000 tons that will enable us to produce locally the products we need.
[REFINING & CHEMICALS]
Jean-Pascal Clémençon: In October 2018, we signed an agreement for a petrochemicals project at Arzew, near Oran that will enable us to develop a polypropylene project.
[Mehdi Koudjeti, Senior Business Development Manager – Refining & Chemicals]
Mehdi Koudjeti: It's a first for the Group in Algeria as it is the first investment in chemical refining. We aim to produce 550,000 tons of polypropylene annually making this one of the largest facilities of its kind worldwide. Construction work has begun and the unit should enter production in 2023. This plant will manufacture plastic - polypropylene - from the raw material, propane. By transforming propane into polypropylene, Algeria can sell its product more profitably on international markets as a ton of polypropylene is worth roughly twice as much as a ton of propane at current market rates.
[Philip Olivier, General Manager of Global LNG SAS – Gas Renewables & Power]
Philip Olivier: Sonatrach started the first commercial trade of LNG in 1964, to England and one year later to France.
Jean-Pascal Clémençon: The acquisition of Engie LNG by the Group has enabled us, via our GRP (Gas, Renewables & Power) branch, to enter the LNG value chain.
Philip Olivier: The Sonatrach relationship is very important because the LNG supply contract from Algeria to France is our biggest contract in the portfolio and vice-versa, Total is Sonatrach's biggest LNG offtaker. Our teams are currently working on extending this long-term partnership. Our teams are also working on the cooperation agreement on LNG trading - physical and financial trading. So, I'm convinced that our partnership will continue to grow in the years to come.
[Sam Kalami, Business Development Manager Middle East & North Africa – Gas Renewables & Power]
Sam Kalami: Algeria has huge potential for solar power development. Currently, most of Algeria's electricity comes from gas-fired power plants. If tomorrow, part of this electricity can be generated by solar power that would enable Algeria to reduce its gas consumption.
[Franck Léglise, Head of Tenders & Africa – Gas Renewables & Power]
Franck Léglise: We've been working with Sonatrach in recent months on a number of flagship projects. The first of which will be installed on a powerplant owned by Total and Sonatrach. The largest will be implemented in the Berkine basin for a capacity of 150 to 200 MW.
Jean-Pascal Clémençon: Today, we are clearly a preferred partner of Sonatrach. It's a partnership that is highly constructive which enables us to underpin our key ambition in Algeria, namely, broad-based energy development. We have now entered a phase of really key growth with Sonatrach.