SONATRACH, Eni Sign $1.35 Billion Hydrocarbon Production Deal for Zemoul El Kbar
ALGIERS – Algeria’s state energy company SONATRACH and Italian energy giant Eni signed a major hydrocarbon production sharing contract on Monday to explore and develop the Zemoul El Kbar perimeter, located in the Berkine Basin, approximately 300 km east of Hassi Messaoud.
Concluded under Algeria’s hydrocarbon law No. 19-13, the contract spans 30 years with a possible 10-year extension and includes a 7-year exploration phase. The total investment planned for exploration and development is estimated at $1.35 billion, including $110 million dedicated to research activities.
The work program will leverage innovative technological processes and advanced digital solutions for operations, along with new production optimization and reserve recovery techniques. The agreement also emphasizes local content, prioritizing subcontracting with national suppliers.
Production from the Zemoul El Kbar development is projected to reach 415 million barrels of oil equivalent (bep), including 9.3 billion cubic meters of gas by the end of the contract period.
The signing follows the Head of Agreement reached between SONATRACH and Eni on May 19, 2024. In parallel with the hydrocarbons contract, the two companies signed a Gas Agreement detailing terms for marketing dry gas intended for export.
Additionally, a three-year framework agreement was signed between SONATRACH, Eni, and ECU to strengthen SONATRACH staff capabilities and promote knowledge transfer through training programs at the ECU institution.
