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Wednesday, October 31, 2018
A deal was signed between ENI and Sonatrach on the sidelines of the Algeria Future Energy Summit that will see ENI take a 49% stake in three concessions in the onshore North BerkineBasin.
The Chairman and Director General of Algeria’s state oil company Sonatrach, AbdelmoumemOuldKaddour, and the CEO of ENI, Claudio Descalzi, signed the agreement on behalf of their respective companies.
The agreement, which was signed at the Algeria Future Energy Summit in Algiers, will cover three areas: Sif Fatima II, Zemlet El Arbiand Ourhoud II. Sonatrach will retain a 51% stake.
The licenses cover a total area of 8,500 sq km and are located in the North BerkineBasin where all the company’s current production assets are also located.
The two firms will carry out an important exploration program in order to develop the reserves on the three blocks, estimated at 145 million boe. 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 Descalzi, 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.”
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