Sonatrach, Eni Sign $1.35B 30-Year Algeria Hydrocarbon Deal

Algeria's state-run hydrocarbon company Sonatrach and Italy's Eni have signed a 30-year, $1.35 billion production-sharing contract to explore and develop hydrocarbons in the Zemoul El Kbar area of the Berkine Basin in southeastern Algeria. The contract includes a seven-year exploration phase, with $110 million allocated for research, and may be extended for an additional 10 years. The project aims to produce approximately 415 million barrels of oil equivalent, including 9.3 billion cubic meters of natural gas, utilizing advanced digital technologies to optimize production and reserves recovery. This agreement strengthens the strategic energy partnership between Algeria and Italy, with Algeria being a key gas supplier to Italy and Africa's largest natural gas exporter. The deal also emphasizes local content and subcontracting to national suppliers, and is complemented by a gas marketing agreement and a framework for employee training. Eni, present in Algeria since 1981, manages the TransMed gas pipeline that connects Algeria to Italy via Tunisia.