Sonatrach accelerates upstream decarbonisation with Eni

To put in place decarbonisation practices while working together on concessions, Algeria's state-owned oil company, Sonatrach, has signed a new Memorandum of Intent with Italian oil major, Eni, with international best practices in mind 

The latest signing is built on a three-year Memorandum of Intent that was originally secured in 2023, committing to reducing gas flaring, valourising recovered gas, and mitigating emissions associated with upstream activities in Algeria.

The new agreement widens the scope of collaboration, including natural CO₂ removal initiatives through forestry projects, and advance monitoring, quantification and reduction of methane emissions based on international Oil & Gas standards.

The new Memorandum of Intent builds on the previous one by further broadening the scope of cooperation and introducing new areas of collaboration. In particular, the parties will cooperate in the field of natural CO₂ removal initiatives through forestry projects and will strengthen activities for the monitoring, quantification and reduction of methane emissions through the adoption relevant international oil & gas standards.

The technical analyses, capacity building initiatives and field visits that made up the carefully structured 2023 agreement have materialised in reduced fugitive and venting emissions, and flaring while boosting energy efficiency and unlocking opportunities for carbon capture, utilisation and storage. It has also produced technicians with new skills in generating the right measurements in terms of greenhouse gas and methane emissions reductions.

The most innovative outcome of the 2023 agreement has been the Leak Detection and Repair (LDAR) campaign, which was carried out across 800 km of pipelines, with around 7,500 monitored points and relevant reduction of fugitive emissions. LDAR measurement campaigns are now conducted autonomously on a routine basis in all joint ventures jointly operated by Eni and Sonatrach.

The evaluation of the baseline emissions was also carried out in six upstream assets operated by Eni and Sonatrach in the country.