Eni has signed a production sharing contract with SONATRACH for development and exploration opportunities in the Zemoul El Kbar area, which is located in the Berkine Basin near the East of Hassi Messaoud
This comes following Eni's win of the Reggane II block in partnership with PTTEP at the 2024 Algeria Bid Round.
Drawn in line with Algeria's hydrocarbon law n°19-13, the contract is valid up to 30 years, with an expansion scope for an additional 10 years. Backed by a seven-year window for research, the budget set for exploration and development activities amount to US$1.35bn, with US$110mn allocated to research investments.
With the Zemoul El Kbar development, Algeria will see the integration of the latest digital solutions in operating, production optimisation practices, and reserves recovery. These advanced technologies will maximise asset valuations for the partners and equip Zemoul El Kbar to produce approximately 415 mn boe of which 9.3 bn cu/m will be at the end of the contractual period.
In addition, recourse to local content and subcontracting of national suppliers is privileged, within the frame of this contract. A three-year framework agreement between SONATRACH, Eni and ECU will advance skills and knowledge transfer to support SONATRACH employees.
The partners also signed a gas agreement to support the hydrocarbons contract to enable the export of dry gas from the Zemoul El Kbar Exploitation Perimeter.
SONATRACH signs production sharing contract with Eni
