Eni, Total to Explore Deep Offshore Algeria

Eni and Total have signed two agreements in Algiers October 29 that include "an exclusive partnership" for exploration offshore Algeria.

During the ongoing Algeria Future Energy Summit, Eni CEO Claudio Descalzi and Total CEO Patrick Pouyanne signed two agreements with their counterpart at Algerian state producer Sonatrach, Abdelmoumem Ould Kaddour, that include an exclusive partnership for offshore exploration in Algeria.

In parallel, Eni and Total will also pursue obtaining [onshore] exploration permits that will allow for the rapid completion of the hydrocarbon potential assessment.

Eni's CEO, Claudio Descalzi, said: "Together with Sonatrach and Total, we will have the opportunity to explore the deep waters of the Algerian offshore, a virtually unexplored geological province where Eni will be able to contribute by leveraging its experience in the eastern Mediterranean and its inventory of advanced exploration technologies."

This appears to be the second partnership involving international majors exploring offshore Algeria. Descalzi said last year that Eni, ExxonMobil and Sonatrach signed an agreement that will enable both foreign firms jointly to explore offshore Algeria in February 2017, describing them as "new blocks ... just for the exploration phase” (see towards the end of NGW's Mar.1 2017 report). Eni's statement provided no update on the status of that exploration agreement. 

This follows too a recent agreement by Eni, BP and Libyan state NOC including a commitment to resume exploration in previously BP-run blocks, including offshore Libya.

Eni also October 29 signed a deal with Sonatrach to increase its interest in three North Berkine basin oil blocks in the Algerian Sahara Desert and aiming to develop them into a new gas hub.