Algeria and Eni sign $1.35bn energy deal

Algeria’s state energy firm Sonatrach and Italy’s Eni have signed a $1.35 billion, 30-year production-sharing deal to explore and develop hydrocarbons in southeastern Algeria, AFP reported Monday.

The agreement targets the Zemoul El Kbar area in the Berkine Basin, 300 km east of Hassi Messaoud, and includes a seven-year exploration phase. An additional $110 million will be directed to research and initial development.

The partners aim to recover 415 million barrels of oil equivalent, including 9.3 billion cubic meters of natural gas. The deal also includes an optional 10-year extension and features the use of advanced digital and production technologies to boost output and efficiency.

Sonatrach CEO Rachid Hachichi called it a “qualitative step” toward modernized extraction. Eni, active in Algeria since 1981, also operates the TransMed pipeline linking Algerian gas to Europe via Tunisia. Algeria remains Africa’s top natural gas exporter and ranks seventh globally.