Eni, Sonatrach pen raft of deals
Italy's Eni and Algeria's Sonatrach have signed energy sector deals in the fields of exploration and production, research and development, decarbonisation and training, the companies said on March 25.
One agreement was on relaunching exploration and development activities in Algeria's Berkine basin region. It also provides for the creation of a gas and oil development hub, through synergy with the existing Menzel Ledjmet East (MLE)-Central Area Fields complex (CAFC) installations, the companies said.
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The agreement is part of the process for finalising a new hydrocarbon contract in the basin, following Algeria's passing of new oil and gas legislation at the end of 2019 that aimed to encourage investment.
The two companies also signed a memorandum of understanding on developing renewable energy, biofuels and hydrogen. This deal "aims to strengthen the cooperation already in place between the two companies in the technological field and continue the decarbonisation path undertaken to support the transition towards a low carbon future," Eni said.
The pair signed an additional agreement on training staff in the upstream sector and with regards to energy transition technologies.
Sonatrach has signed preliminary deals with a number of international oil companies over the past year on upstream development, including US majors Chevron, ExxonMobil, Austria's OMV and France's Total. But no new binding agreements have been reached. Interest in Algeria's oil and gas sector was perked when the government passed its hydrocarbon law, but has waned greatly since the coronavirus-induced collapse in oil and gas prices last year.