Eni buys 49 per cent stake in three Algerian oil concessions

Eni 30Eni signed an agreement with Sonatrach for three onshore concessions in the North Berkine basin. (Image source: Bureau of Land Management/Flickr)Africa-focused oil and gas company Eni has signed an agreement with Algeria’s state oil company Sonatrach, a move in which Eni takes a 49 per cent stake in three oil concessions in the onshore North Berkine basin, located in the Algerian desert

The agreement, which was signed at the Algeria Future Energy Summit in Algiers, will cover three areas including Sif Fatima II, Zemlet El Arbi and Ourhoud II. Sonatrach will retain a 51 per cent stake.

The licenses cover a total area of 8500 sq km and are located in the North Berkine basin, an area where Eni has had a leading position since 1981 and where all the company's current production assets are also located, including Bir Rebaa North (BRN), from where Eni began producing oil in the country in 1995.

Eni and Sonatrach will carry out an important exploration programme in order to develop the reserves of the three blocks, estimated at 145 mmbbl of oil equivalent. Production is expected to start by the end of 2020.

The development will benefit from synergies with existing facilities in the area, as well as new projects and infrastructure that are currently under construction. These include a 180km-long gas pipeline that is being fast-tracked and will connect the oil fields of BRN and MLE.

Eni's entry into the three concession contracts is subject to approval by the Algerian authorities.

Commenting on the agreement, Claudio Descalzi, CEO of Eni, said, “Today's agreement is further confirmation of Algeria's strategic importance, where Eni has planned significant investments over the next few years. With Sonatrach, we will work together to position North Berkine basin as a gas hub. The country still has a lot of gas and Eni will leverage its technology and skills to develop it.”

Eni has been present in Algeria since 1981 and currently participates in 32 mining permits with an equity production in the country of 90,000 boe per day, making the company the main international player in the country.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?