Eni-Sonatrach-ink-1.35-billion-development-deal-in-Algeria

Sonatrach, Eni ink $1.35-billion development deal in Algeria

Algeria

ALGIERS, July 8, 2025 – Sonatrach and Eni have signed a PSA to explore and develop the Zemoul El Kbar area in Algeria’s Berkine Basin, about 300 kilometres east of Hassi Messaoud, Sonatrach announced on Monday.

The contract follows a heads of agreement between Sonatrach and Eni signed in May 2024, and has a duration of 30 years, with a possible 10-year extension. Terms include a 7-year research and exploration phase.

Total investments within the Zemoul El Kbar perimeter are estimated to reach USD 1.35 billion, with USD 110 million initially earmarked for exploration. Production from the acreage has been estimated at around 415 million boe, including 9.3 bcm (328.4 bcf) of gas by the end of the contract period.

The companies also signed a separate gas agreement to define terms for exporting dry gas from the Zemoul El Kbar exploration perimeter.

Additionally, Sonatrach, Eni and ECU signed a three-year training framework agreement to develop Sonatrach personnel skills. Sonatrach noted that the project will employ advanced digital technologies for production optimisation and reserves recovery, and will prioritise domestic subcontractors and local content.

In February 2025, Sonatrach signed a USD 850-million PSC with Sinopec for exploration and development in the Hassi Berkane North perimeter, located around 80 kilometres from Hassi Messaoud.