Eni brings two Algerian gas fields on stream
Eni has launched production at two gas fields in the Berkine South area of Algeria, the company announced on October 10, with the milestone being reached just six months after the Italian major secured a contract for the site.
The contract for the Berkine South was the first to be signed under a new hydrocarbon law in Algeria, aimed at simplifying procedures and incentivising investment in the country's resources. The two Eni-operated fields are currently flowing at a rate of 1mn m3/d and approximately 4,000 barrels/day, and production capacity is due to increase to 2mn m3/d by year-end.
Berkine South spans a 7,880 km2 area. Eni said at the time it signed its contract that its work would be backed up with $1.4bn in investment.
Gas from the fields will flow to Europe. Their launch comes after Algeria's Sonatrach, Eni's project partner, announced last week it had completed price negotiations with Spain's Naturgy, for deliveries via the Medgaz pipeline. The terms were not disclosed, but Sonatrach said the two sides had revised pricing in light of market shifts, to establish a "win-win basis."