Eni has signed an agreement with Sonatrach to relaunch production in the Berkine basin and to accelerate decarbonisation initiatives, a move that is set to strengthen Eni's presence in Algeria
The contract, which is the first ever signed under the aegis of the new Algerian oil law, covers an area of 7,880 sq km in the southern part of the Berkine basin, in close proximity to the company's current production assets, Menzel Ledjemet Est (MLE) and Central Area Field Complex (CAFC), already operated by the JV Eni-Sonatrach.
This project will enhance synergies with existing plants. The entry into force of the new contract is subject to approval by the competent Algerian authorities.
Eni’s CEO Claudio Descalzi and Sonatrach’s CEO Toufik Hakkar shared the commitment to create an ambitious exploration and development programme in the area. In the first phase, the project envisages the fast-tracked development of reserves estimated at 135 mmbbl of oil equivalent, with a start-up of production expected by the end of 2022.
With a view to building on the cooperation already in place in the technological field and to continue the decarbonisation process undertaken in support of the initiatives towards carbon neutrality, Eni and Sonatrach have also signed a memorandum of understanding with a strategic value for cooperation in the energy transition sector.
The agreement provides for the assessment of joint opportunities in the fields of renewables, hydrogen, the capture, use and storage of CO2, bio-refining and many other initiatives in line with the companies’ respective decarbonisation objectives.
This agreement is in line with Eni's commitment to achieving carbon neutrality by 2050, consolidating the partnership with Sonatrach for a sustainable development and to jointly tackle the energy transition challenges.