Algeria’s state-run hydrocarbon company Sonatrach and the Italian energy company Eni on Monday signed a production sharing contract valued at $1.35 billion to explore and develop hydrocarbons in southeastern Algeria.
The 30-year contract encompasses the exploration and exploitation of hydrocarbons in the Zemoul El Kbar contract area, situated within the Berkine Basin, 300 km east of Hassi Messaoud, as stated by the Algerian group.
The agreement, which includes a seven-year exploration and research period, can be extended for an additional 10 years. The total investments planned for exploration and exploitation in this area amount to approximately $1.35 billion, with $110 million specifically allocated to research and exploration.
According to the statement, the contract aims to recover “415 million barrels of oil equivalent (BOE), including 9.3 billion m3 of natural gas over the entire contractual period.”
Sonatrach’s CEO, Rachid Hachichi, quoted by the official APS agency, remarked that this agreement represents “a qualitative step that will enable the use of the latest digital solutions and innovative technologies in the fields of exploration and production, improve well productivity, and recover reserves.”
Eni, which has been present in Algeria since 1981, jointly manages the TransMed gas pipeline with Sonatrach, connecting Algeria to Italy via Tunisia.
Algeria is recognized as Africa’s largest natural gas exporter and the world’s seventh largest.
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