Algiers, Algeria – Algeria’s state-run hydrocarbon company Sonatrach and the Italian energy company Eni on Monday signed a production sharing contract worth $1.35 billion to explore and develop hydrocarbons in southeastern Algeria, according to a statement.
The agreement, which may be extended for an additional 10 years, provides for a seven-year exploration and research period.
The total investments planned for exploration and exploitation in this area are approximately $1.35 billion, including $110 million allocated to research and exploration investments.
The contract aims to recover “415 million barrels of oil equivalent (BOE), including 9.3 billion m3 of natural gas over the entire contractual period,” according to the statement.
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, quoted by the official APS agency.
Present in Algeria since 1981, Eni manages the TransMed gas pipeline with Sonatrach, which connects the country to Italy via Tunisia.
Algeria is Africa’s largest natural gas exporter and the world’s seventh largest.
