Eni has signed a new contract on the Berkine Basin with Sonatrach, while also setting out decarbonisation plans.
Sonatrach CEO Toufik Hakkar and Eni CEO Claudio Descalzi signed the agreement. Observing was Minister of Energy and Mines Mohamed Arkab and Italy’s ambassador to Algeria Giovanni Pugliese.
The contract is the first signed under Algeria’s new oil law, 19/13. It covers 7,880 square km in the south of the basin. The area is close to Eni’s Menzel Ledjemet Est (MLE) and Central Area Field Complex (CAFC).
“Today’s agreements are testimony to the commitment of Sonatrach and Eni to continue the shared strategy of accelerated project development, and to pursue the decarbonisation objectives within our common commitment to achieve carbon neutrality,” Descalzi said.
The Berkine Sud project aims to fast track development to begin producing by the end of 2022. Sonatrach estimated it would involve an investment of $1.4 billion, with output of 45,000 barrels of oil equivalent per day. Eni estimated the reserves at 135 million boe.
Sonatrach will assist, via its subsidiaries, in supporting local content. The proximity to existing infrastructure will support the fast-track plans.
The two companies also agreed to work together on decarbonisation. Sonatrach said this covered solar power, lithium prospecting, biofuel and hydrogen production. Eni said it also covered carbon capture, utilisation and storage (CCUS).