Eni, SONATRACH, Oxy and TotalEnergies have signed a production sharing contract (PSC) which will the partners increase investments into the country
The PSC was signed for blocks 404 and 208 in Algeria which are located onshore in the prolific Berkine basin, in Eastern Algeria.
The contract, signed under Algeria’s new hydrocarbon law of 2019, will allow the partners to boost investments, increasing the fields’ hydrocarbons reserves while extending their production life for further 25 years.
Furthermore, it will also enable future valorisation of significant quantities of associated gas which might become available for export, contributing to the diversification of gas supplies to Europe.
The agreed plan of activities will also include new technologies to improve the reserves recovery factor and reduce CO2 emissions through energy efficiency and decarbonizstions projects.
Eni CEO, Claudio Descalzi, commented, “Through this new contract, additional volumes of gas will be made available for export and for the domestic market, coherent with Eni’s commitment to the energy transition. It also highlights the importance of the strategic partnership with SONATRACH, aimed at long term investments in Algeria to maximise asset value.”