Signed an agreement with Sonatrach for entry into three onshore concessions in the North Berkine basin
The President and General Manager of the Algerian state company Sonatrach, Abdelmoumem Ould Kaddour, and Eni's Chief Executive Officer, Claudio Descalzi, today signed an agreement for the entry of Eni during the Algeria Future Energy Summit in Algiers with a share of 49% in the concessions of Sif Fatima II, Zemlet El Arbi and Ourhoud II, in the North Berkine basin, in the Algerian desert.
The licenses, in which Sonatrach will maintain a share of 51%, cover a total area of 8500 km2 and are located in the North Berkine basin, an area where Eni is present from 1981 with a leading position and in which all the the company's production assets, including the Bir Rebaa North (BRN) field, which started the 1995 in Eni's oil production in the country.
Eni and Sonatrach will carry out an important exploration program and will complete the delineation to develop the reserves of the three blocks estimated in 145 million barrels of oil equivalent (buoys), with the start of production planned for the end of 2020.
The development of these resources will benefit from synergies with existing installations and at the same time with new installations currently under construction, such as the 180 kilometer gas pipeline that will connect the oil fields of BRN and MLE with a fast-track project.
Eni's entry into the three concession contracts is conditional on approval by the Algerian authorities.
Eni's Chief Executive Officer said: "Today's agreements are a further confirmation of the strategic nature of Algeria where Eni has planned major investments in the coming years. We will work with Sonatrach to create a gas hub in the North Berkine basin. In the country there is still a lot of gas and Eni will provide its technology and skills to develop it ».
Eni is present in Algeria from the 1981 and today participates in 32 mining permits with an equity production in the country of 90.000 barrels of oil equivalent to the day, which make the company the main international player in the country.