A contract signed today in Algiers to relaunch production in the Berkine basin and an agreement for initiatives in the field of decarbonisation, which further strengthen Eni's presence in the country.
The CEO of Sonatrach, Toufik Hakkar, and the CEO of Eni, Claudio Descalzi, signed today in Algiers, in the presence of the Minister of Energy and Mines Mohamed Arkab and the Ambassador of Italy in Algiers Giovanni Pugliese , a new oil contract in the onshore area of the Berkine basin, where Eni has been a leader since 1981. On the same occasion, Eni and Sonatrach also signed a memorandum of understanding for cooperation on initiatives in the energy transition.
Eni's CEO Claudio Descalzi commented that "the signing of these agreements is testimony to the commitment of Sonatrach and Eni to continue the shared strategy of accelerated project development, and to pursue the decarbonisation objectives within our common commitment to achieve carbon neutrality ".
The contract is the first that the industry signs under the aegis of the new Algerian oil law, and covers an area of 7880 km2 in the southern part of the Berkine basin, close to the production assets of the company, Menzel Ledjemet Est (MLE). and Central Area Field Complex (CAFC), already operated by the Eni-Sonatrach JV.
Descalzi and Hakkar shared their commitment to create an ambitious exploration and development program in the area. In the first phase, the project envisages the accelerated development of reserves estimated at 135 million barrels of oil equivalent, with a start-up of production expected by the end of 2022. This project will enhance the synergies with existing plants. The entry into force of the new contract is subject to approval by the competent Algerian authorities.
With a view to strengthening and increasing the cooperation already in place in the technological field and to continue the decarbonisation process undertaken in support of the initiatives towards carbon neutrality, Eni and Sonatrach have also signed a memorandum of understanding with a strategic value for cooperation in the energy transition sector.
The protocol provides for the assessment of joint opportunities in the fields of renewables, hydrogen, CO2 capture, use and storage, bio-refining, and many other initiatives in line with their respective decarbonisation objectives.
This agreement is in line with Eni's commitment to achieving carbon neutrality by 2050, and consolidates the alliance with Sonatrach for sustainable development and to tackle the challenge of the energy transition together.
Eni has been present in Algeria since 1981 where it is the operator of various mining permits. With an equity production in the country of 95.000 barrels of oil equivalent per day, Eni is the most important international company operating in the country.