Latest news with #BerkineBasin
Yahoo
08-07-2025
- Business
- Yahoo
Sonatrach and Eni sign $1.35bn 30-year hydrocarbon production deal
Algeria's national oil and gas company Sonatrach, with its partner Eni, have formalised a 30-year hydrocarbon production sharing contract for the exploration and development of the Zemoul El Kbar perimeter, located in the country's Berkine Basin. The contract encompasses an exploration and development zone of 4,200km², 300km southeast of Hassi Messaoud. It integrates adjacent assets formerly managed under distinct agreements. The strategic partnership, governed by hydrocarbon law 19-13, includes an option to extend for an additional ten years and encompasses a seven-year research phase. The agreement anticipates a total investment of $1.35bn, with $110m earmarked for research. The exploration and development efforts at Zemoul El Kbar will utilise cutting-edge technology and digital solutions to optimise production and enhance reserves recovery. The contract also emphasises the use of local content and prioritises subcontracting to national suppliers. The projected output from the Zemoul El Kbar area is estimated at 415 million barrels of oil equivalent (mboe), including 9.3 billion cubic meters (bcm) of gas, by the end of the contractual period. This production sharing contract is the culmination of negotiations following the head of agreement signed by Sonatrach and Eni on 19 May 2024. Alongside the hydrocarbons contract, the parties also signed a gas agreement detailing the marketing terms for the dry gas produced, intended for export. In conjunction, a framework agreement was signed between Sonatrach, Eni and ECU to enhance the skills of Sonatrach employees through knowledge transfer and training provided by the ECU institution over three years. In April 2025, Vallourec secured a significant contract to supply oil country tubular goods (OCTG) to Sonatrach. "Sonatrach and Eni sign $1.35bn 30-year hydrocarbon production deal" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
07-07-2025
- Business
- Zawya
Algeria's Sonatrach, Italy's Eni sign $1.35bln production sharing deal
Algeria's state-owned energy company Sonatrach and Italy's Eni have signed a 30-year production sharing agreement for the Zemoul El Kbar area, located in the Berkine Basin, according to statements issued by the two companies on Monday. The contract, signed under Algeria's new Hydrocarbon Law No. 19-13, includes an option for 10-year extension and a 7-year exploration phase. Total planned investments are estimated at $1.35 billion, with $110 million allocated for exploration activities. The project involves the development and exploration of an area of about 4,200 square kilometres (sq km) located approximately 300 km southeast of Hassi Messaoud and includes neighbouring assets previously under separate contracts. It is expected to yield up to 415 million barrels of oil equivalent (boe), including 9.3 billion cubic meters of natural gas. The partners aim to optimise recovery through advanced technologies and the use of existing nearby facilities. The contract also includes provisions to enhance local content, encouraging the subcontracting of national suppliers A Heads of Agreement for the project was previously signed in May 2024, laying the groundwork for the current agreement. In addition to the upstream contract, the two companies also signed a gas marketing agreement to define terms related to the export of dry gas from the Zemlet El Kbar. 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. (Writing by Majda Muhsen; Editing by Anoop Menon) (
Zawya
18-06-2025
- Business
- Zawya
TotalEnergies-QatarEnergy partnership awarded Ahara Block in Algeria
A partership between France's TotalEnergies and Qatar's QatarEnergy has been awarded the Ahara block in Algeria's Illizi Basin, following the country's 2024 hydrocarbons bid round, TotalEnergies said in a statement on Wednesday. Ahara covers an area of approximately 14,900 square kilometres (sq km), and is located at the intersection of the prolific Berkine and Illizi Basins, the statement noted. TotalEnergies and QatarEnergy will each hold a 24.5 percent interest in the license, while Algeria's national oil company Sonatrach will retain a 51 percent majority stake, the statement said, adding that TotalEnergies will serve as the operator of the block. Algeria Bid Round 2024 was the first to be launched under Algeria's new hydrocarbon law No. 19-13 and was conducted by the National Agency for the Valorisation of Hydrocarbon Resources (ALNAFT). A partnership between Italian oil and gas giant Eni and Thailand's PTT Exploration and Production Public Company (PTTEP) was awarded the Reggane II Block under the 2024 round. (Writing by Majda Muhsen; Editing by Anoop Menon)
