Eni Inks Deal Targeting 'New Algerian Gas Hub'
Italy's Eni has signed an agreement aiming to develop three Algerian oil blocks within two years that it hopes will also produce gas.
Sonatrach CEO Abdelmoumem Ould Kaddour and his counterpart at Italy's Eni Claudio Descalzi signed the agreement October 29 in Algeria that will take Eni's stake in three oil concessions in the onshore North Berkine basin located in the Algerian desert, namely Sif Fatima II, Zemlet El Arbi and Ourhoud II, to 49%. Sonatrach will retain a 51% stake. They cover a total of 8,500 km2 . Eni's entry into the three concession contracts is subject to approval by the Algerian authorities.
The reserves of the three blocks are estimated at 145 million barrels of oil equivalent. Production is expected to start by the end of 2020 and both firms will also conduct exploration too.
Development will benefit from synergies with existing facilities in the area, including a 180km-long gas pipeline that is being fast-tracked and will connect the oil fields of BRN and MLE.
Descalzi said: "With Sonatrach, we will work together to position North Berkine basin as a gas hub. The country still has a lot of gas and Eni will leverage its technology and skills to develop it". Eni net equity production in Algeria is 90,000 barrels of oil equivalent per day, making it the main international player in the country