GDF Suez agrees $1.5bn gas deal with Sonatrach
French company to develop Touat gas field in southwest Algeria
GDF Suez has announced that it is to join forces with Algerian energy giant Sonatrach to develop the Touat gas field in southwest Algeria.
The French company is willing to spend US$1.5 billion on developing the field with working starting this year and production starting in 2013.
"Work will begin in 2009 with the start of output planned for 2013. Peak production should reach about 4.5 billion cubic metres of natural gas per year", the companies said in a joint statement released to the press.
The Tout gas field is believed to hold 445 million barrels of oil equivalent and it is estimated that production should last until 2030-2033.
"It's a major project for GDF Suez as it's the first time the group produces gas in Algeria," Jean-François Cirelli, the firm's vice president is quoted by Reuters as saying.
GDF Suez holds 65% of the licence with Sonatrach owning the other 35%.