Italy’s Enia and Algeria’s state-owned Sonatrach signed a memorandum of understanding to allow for talks on new upstream opportunities in the North African country. The MoU also covered potential opportunities for overseas exploration and production. The MoU is part of Algeria’s vision to increase hydrocarbon production through a more favourable tax regime for investors under a new hydrocarbon law passed in January.
Previously, Sonatrach also inked similar MoUs with Chevron, ExxonMobil, Turkey’s TPAO, as well as Russia’s Lukoil and Zarubezhneft. Sonatrach also engaged in talks with other big oil companies, including Equinor, OMV, and Gazprom Neft as the country aims at reviving its faltering oil and gas sector.
Eni and Sonatrach also inked three gas agreements related to Sonatrach’s marketing of almost 1.5 Bcm/year of gas produced from Eni-operated Ourhoud-2, Sif Fatima-2, and Zemlet El Arbi fields in the Berkine Nord gas project until 2049. The two companies also agreed to revise their bilateral gas sales contract, but the details were not disclosed.
