Eni has reached an agreement with Sonatrach to acquire a 49% stake in three oil concessions in the onshore North Berkine basin in the Algerian desert.
The companies signed the agreement at the Algeria Future Energy Summit in Algiers.
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The acquisition covers Sif Fatima II, Zemlet El Arbi and Ourhoud II, which are spread across a total area of 8,500km². Once the transaction is completed, Eni will hold a 49% interest in these concessions, while the remaining 51% stake will remain with Sonatrach.
Eni holds producing assets in the North Berkine basin, including Bir Rebaa North (BRN), where production started in 1995.
The parties also agreed to undertake an exploration programme to develop the reserves of the three blocks, which are estimated at 145 million barrels of oil equivalent.
Production from the blocks is anticipated to commence by the end of 2020.
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By GlobalDataEni CEO Claudio Descalzi said: “Today’s agreement is further confirmation of Algeria’s strategic importance, where Eni has planned significant investments over the next few years.
“With Sonatrach, we will work together to position North Berkine basin as a gas hub. The country still has a lot of gas, and Eni will leverage its technology and skills to develop it.”
The company noted that the development of the blocks will leverage synergies offered by existing regional facilities, as well as new projects and infrastructure currently under construction, including a 180km-long gas pipeline that will connect the BRN and Menzel Ledjmet East (MLE) oil fields.
Eni and Sonatrach jointly operate the MLE field, which is located on Algerian Block 405b and where production started in 2013.
The acquisition of the interest in the three blocks is subject to approval from the Algerian authorities.
