By Ejekwu Chidiebere
- Eni and partner SONATRACH sign new exploration and development contract for the Zemoul El Kbar perimeter
Eni says its CEO Claudio Descalzi has met with the President of the Republic of Algeria Abdelmadjid Tebboune in Algiers for discussions on the company’s activities in the country, including gas production and export, ongoing and future investments, and energy transition initiatives. The Minister of State and Minister of Energy, Mines and Renewables Energies Mohamed Arkab, the CEO of Sonatrach Rachid Hachichi, and the CEO of Sonelgaz Mourad Adjal were also reported to have participated in the meeting.
The visit according to Eni in its statement posted to Energy Window International (Media) had offered it and its partner SONATRACH with the opportunity of signing into action a new hydrocarbons contract for the Zemoul El Kbarunder area, “in the framework of the Law no. 19-13” governing hydrocarbons activities. The contract, with a duration of 30 years Eni says, covers a development and exploration area of about 4200 sq Km located approximately 300 km southeast of Hassi Messaoud which does not of course exclude the neighbouring assets previously under separate contracts.
This renewed framework with SONATRACH Eni maintains was critical to enhancing further the value of its asset through a plan encompassing exploration and development operations, leveraging innovative technologies to optimize recovery rates and existing nearby facilities.
Energy Window International (Media) further learnt that the new agreement was on the heels of the recent award, which was structured within the context of 2024 Algeria Bid Round where Eni, in partnership with PTTEP, will now operate the Reggane II block.
The meeting Eni says was also an occasion for the parties to share the joint programs for gas production, as well as gas and LNG exports to Europe, discuss renewables, hydrogen and the electrical interconnector between Algeria and Europe.
Eni says it has been in Algeria since 1981, with an equity production of about 137,000 barrels of oil equivalent per day in 2024 which also gave it the needed space and recognition as the “most important international company operating in the country”.