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July 8, 2025 | 2 months ago

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Sonatrach - Eni: another major contract signed

Yesterday, the state-owned Sonatrach group and Italy's Eni sealed a major hydrocarbon contract worth $1.35 billion. This production sharing contract aims to recover 415 million barrels of oil equivalent, including 9.3 billion m3 of sales gas in the Zemoul El Kbar perimeters in the Berkin basin.

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The extension of exploration and production activities in the perimeters of the Zemoul El Kbar field is formalized by the signing of two contracts between Sonatrach and Eni. The CEOs of both groups underline the strategic importance of their partnership, which dates back to the 1980s.

ENI operates in several gas basins in Algeria (Berkin, Illizi, Ahnet) and plans to expand its activities in Reggan II. This expansion comes at a time when Algeria is seeking to increase its production and Italy is seeking to secure its supplies.

The development of the Zemoul El Kbar perimeter (4291 km²) is part of a memorandum of understanding signed in May. It provides for the drilling of 16 wells and connection work over a 7-year study period.

The cooperation could be extended to three other fields already in production: Rourd Louh, Sif Fatma and Rhourd Messaoud Nord, also mentioned in the May 2024 memorandum of understanding.

In addition to the production sharing contract, a gas agreement has also been signed. It covers the marketing of dry gas produced in the new perimeters, notably Zemoul El Kbar, for export.

July 8, 2025 | algeria-logo

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