Edison has announced that, following the approval by the Algerian authorities – with a decree published in the official gazette on October 12, 2023 – of the agreements signed on May 4 and June 29, 2022, it has completed the sale of its 11.25% stake in the Reggane Nord licence, in Algeria, to Repsol (6.75%) and Wintershall Dea (4.50%). The Reggane Nord field produces gas entirely sold to Sonatrach on a long-term basis.
The Company informs that the value of the transaction is confirmed to be, as previously announced, of approximately USD 100 million (as of the reference date of 1/1/2022), and all other terms and conditions remain unchanged.
With this transaction, Edison confirms its strategic commitment to focus its investments toward energy transition and security of supply of the Italian energy markets with over 10 billion euros of CAPEX to be
invested between 2023 and 2030.
For Wintershall Dea, all signs point to growth in Algeria. The company has been active in the North African country since 2002. Since production began in Reggane Nord in December 2017, around 13 billion cubic meters of gas have been produced in the consortium. Its business in Algeria is an important part of the company’s portfolio and is to be expanded in the future. To this end, in February 2022 Wintershall Dea and partner Sonatrach extended an existing Memorandum of Understanding to consider new business opportunities in Algeria, not just in natural gas but also in hydrogen and Carbon Capture and Storage (CCS).
Dawn Summers, Chief Operating Officer and the responsible Board Member for Algeria, says: “We see great potential for the future of the Algerian energy sector; both for the expansion of natural gas production, and for carbon management and hydrogen projects. Areas in which Wintershall Dea intends to become active in Algeria in the future. With the acquisition of further interest in Reggane Nord, we are now consolidating our presence in Algeria and setting the course for growth.”
Thomas Ruttmann, Senior Vice President and Managing Director Wintershall Dea Algeria says: “Reggane Nord has been producing natural gas reliably and cost-efficiently since 2017. Wintershall Dea is not just an investor, our team is actively contributing experience and know-how and effectively contributes to the efficiency of the project – especially our drilling and reservoir expertise is in demand here. We are pleased to now increase our participating interest in the project and continue to actively advance Reggane Nord in the future.”
Algeria is the largest producer of natural gas in Africa and the third largest exporter of natural gas to Europe. The North African country therefore makes a decisive contribution to Europe’s energy supply and is the ideal partner for Europe to secure its energy supply and at the same time advance the energy transition.
