Algeria’s national oil and gas company Sonatrach, with its partner Eni, have formalised a 30-year hydrocarbon production sharing contract for the exploration and development of the Zemoul El Kbar perimeter, located in the country’s Berkine Basin.
The contract encompasses an exploration and development zone of 4,200km², 300km southeast of Hassi Messaoud. It integrates adjacent assets formerly managed under distinct agreements.
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The strategic partnership, governed by hydrocarbon law 19-13, includes an option to extend for an additional ten years and encompasses a seven-year research phase.
The agreement anticipates a total investment of $1.35bn, with $110m earmarked for research.
The exploration and development efforts at Zemoul El Kbar will utilise cutting-edge technology and digital solutions to optimise production and enhance reserves recovery.
The contract also emphasises the use of local content and prioritises subcontracting to national suppliers.
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By GlobalDataThe projected output from the Zemoul El Kbar area is estimated at 415 million barrels of oil equivalent (mboe), including 9.3 billion cubic meters (bcm) of gas, by the end of the contractual period.
This production sharing contract is the culmination of negotiations following the head of agreement signed by Sonatrach and Eni on 19 May 2024.
Alongside the hydrocarbons contract, the parties also signed a gas agreement detailing the marketing terms for the dry gas produced, intended for export.
In conjunction, a framework agreement was signed between Sonatrach, Eni and ECU to enhance the skills of Sonatrach employees through knowledge transfer and training provided by the ECU institution over three years.
In April 2025, Vallourec secured a significant contract to supply oil country tubular goods (OCTG) to Sonatrach.
