Algeria

Eni and Its Partner Sonatrach to Sign a New Hydrocarbons Contract


Published: Monday July 7, 2025
By: Oilfield Africa Review

The President of the Republic of Algeria Abdelmadjid Tebboune has met Eni CEO Claudio Descalzi in Algiers today to discuss the company’s activities in the country, including gas production and export, ongoing and future investments, and energy transition initiatives. The Minister of State and Minister of Energy, Mines and Renewables Energies Mohamed Arkab, the CEO of Sonatrach Rachid Hachichi, and the CEO of Sonelgaz Mourad Adjal also participated in the meeting.

The visit offered the opportunity for Eni and its partner SONATRACH to sign a new hydrocarbons contract for the Zemoul El Kbarunder area, in the framework of the Law no. 19-13 governing hydrocarbons activities. The contract, with a duration of 30 years, covers a development and exploration area of about 4200 sq Km located approximately 300 km southeast of Hassi Messaoud, also includes neighbouring assets previously under separate contracts.

With this renewed framework, Eni and SONATRACH are further enhancing the value of the asset through a plan encompassing exploration and development operations, leveraging innovative technologies to optimize recovery rates and existing nearby facilities.

This new agreement follows the recent award, in the context of 2024 Algeria Bid Round, of the Reggane II block to Eni in partnership with PTTEP.

The meeting was also the occasion for the parties to share the joint programs for gas production, as well as gas and LNG exports to Europe, and to discuss renewables, hydrogen and the electrical interconnector between Algeria and Europe.

Eni has been present in Algeria since 1981. With an equity production of about 137,000 barrels of oil equivalent per day in 2024, Eni stands as the most important international company operating in the country.

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