Algiers - Saba:
Algeria’s Sonatrach and Italy’s Eni have signed a long-term $1.35 billion production-sharing agreement to explore and develop hydrocarbons in the Zemoul El Kbar area, located in the Berkine Basin in southeastern Algeria.
The 30-year contract, extendable for an additional 10 years, includes both exploration and production phases, with $110 million allocated for exploration.
The deal targets the extraction of approximately 415 million barrels of oil equivalent, including 9.3 billion cubic meters of natural gas. Both companies emphasized the use of advanced digital technologies to enhance efficiency and resource recovery.
This agreement strengthens the strategic energy partnership between Algeria and Italy, especially as Rome seeks to reduce its reliance on Russian gas. Since 2022, Algeria has become a key gas supplier to Italy.