Algeria’s state-owned oil company, Sonatrach, and Italian oil and gas giant, Eni, have signed a 30-year production sharing contract to explore and develop the Zemoul El Kbar region of Algeria.
The deal, signed in Algiers, the capital of Algeria, on Monday, July 7, 2025, aligns with the framework of Law No. 19-13 governing hydrocarbon activities.
The contract covers a development and exploration area of approximately 4,200 sq km (1,622 sq mi), located about 300 km (186 mi) southeast of Hassi Messaoud, and includes neighboring assets previously under separate contracts.
According to a statement issued by Eni, the Minister of State and Minister of Energy, Mines, and Renewable Energies, Mohamed Arkab, the CEO of Sonatrach, Rachid Hachichi, and the CEO of Sonelgaz, Mourad Adjal, were also present at the meeting where the deal was signed.
“This agreement represents a qualitative step that will enable the use of the latest digital solutions and innovative technologies in the fields of exploration and production, improve well productivity, and recover reserves,” said Sonatrach’s CEO, Rachid Hachichi.
With the renewed framework, Eni and Sonatrach are further enhancing the value of the asset through a plan encompassing exploration and development operations, leveraging innovative technologies to optimize recovery rates and existing nearby facilities.
This new agreement follows the recent award, in the context of the 2024 Algeria Bid Round, of the Reggane II block to Eni in partnership with PTTEP.
In addition to the contract signing, Eni and Sonatrach also discussed joint programs for gas production, as well as gas and LNG exports to Europe, renewables, hydrogen, and the electrical interconnector between Algeria and Europe.
Eni has been present in Algeria since 1981, with an equity production of about 137,000 boed in 2024.
Source:https://energynewsafrica.com
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