Italy’s Eni has signed a deal to acquire BP’s upstream business in Algeria, including stakes in two gas-producing concessions, for an undisclosed sum.
The deal covers BP’s 45.89% stake in the ‘In Amenas’ concession and a 33.15% interest in the ‘In Salah’ concession.
Eni expects the acquisition to strengthen its presence in Algeria and further contribute to Europe’s gas needs.
Jointly operated with Algerian state-owned oil company Sonatrach, and Norway’s Equinor, the In Amenas and In Salah concessions started producing gas and associated liquids in 2006 and 2004, respectively.
Last year, the assets reported production rates of approximately 11 billion cubic metres (m3) of gas and 12 million barrels of condensates and liquefied petroleum gas (LPG).
In a press statement, Eni said: “Today’s operation will allow Eni to increase its portfolio of assets in the country and, jointly with the new contracts of Berkine South and block 404/208 recently signed, will allow new and synergic development opportunities, mainly focused on increasing gas production.
“The acquisition is in line with Eni’s distinctive strategy to address the challenges of the current energy market to deliver secure and sustainable energy to customers while accelerating the path to net-zero.”
The transaction is conditional on approval from the competent authorities.
BP gas and low carbon energy executive vice-president Anja-Isabel Dotzenrath said: “BP has worked successfully with Algeria and our partners for over almost 30 years, developing and supporting operations on two major gas projects for the country.”
Eni aims to boost its production capacity to more than 120,000 barrels of oil equivalent per day in Algeria in 2023.
In July 2022, Sonatrach and its partners Eni, Occidental, and TotalEnergies jointly signed a production sharing contract (PSC) to invest $4bn in blocks 404 and 208, located in the Berkine basin in Eastern Algeria.
The PSC allows the partners to carry out high density 3D seismic acquisitions, drill 100 oil wells, and convert 46 wells into water-alternating gas (WAG) process wells.