SONATRACH and its partner Eni, signed, today, a hydrocarbon contract of production sharing type to explore and develop the contractual perimeter of Zemoul El Kbar, located in the Berkine Basin some 300 km East of Hassi Messaoud

This agreement concluded under the aegis of hydrocarbon law n°19-13 is for a duration of 30 years and could be extended by 10 additional years. It includes a period of research of 7 years. The overall investments planned for exploration and development on this perimeter amount to 1,35 billion US$, of which 110 million US$ allocated to research investments.

The works schedule relating to this hydrocarbon contract includes recourse to innovative technological processes, integrating the latest digital solutions pertaining to operating, the use of new technologies of production optimization and reserves recovery. In addition, recourse to local content and subcontracting of national suppliers is privileged, within the frame of this contract.

The expected production in the framework of the development of Zemoul El Kbar area is estimated at 415 million bep of which 9.3 billion cubic meters at the end of the contractual period.

As a reminder, the signing of this production sharing contract is the outcome of works related to the Head Of Agreement concluded between SONATRACH and Eni on 19 May 2024.

In addition to the Hydrocarbons Contract for the exploration and exploitation of hydrocarbons on the Zemoul El Kbar perimeter, concluded between SONATRACH and Eni, the two Parties also signed a Gas Agreement whose purpose is to specify the provisions of the Hydrocarbons Contract relating to the marketing of quantities of dry gas from the Zemoul El Kbar Exploitation Perimeter, intended for export.

Also, on the sidelines of this signing, a framework agreement was concluded between SONATRACH, Eni and ECU, aimed at developing the skills of SONATRACH staff and transferring of know-how through the ECU training institution, for a period of three (3) years.

About Sonatrach

Founded on December 31st, 1963, in the wake of Algeria’s independence, SONATRACH is a fully integrated oil and gas company operating across the entire value chain, particularly in exploration, production, pipeline transport, refining and marketing.
As a cornerstone of Algeria’s economy, SONATRACH is the guarantor of national energy security, contributing up to 26% of Algeria’s GDP and 50% of national fiscal revenues.
SONATRACH is also an integrated Group with more than 150 subsidiaries and affiliates, SONATRACH employs, at the group’s level nearly 200,000 people.

About Eni

Eni (NYSE: E) is an integrated energy company employing more than 34.000 people in 69 countries in the world. Eni engages in oil and natural gas exploration, field development and production, as well as in the supply, trading and shipping of natural gas, LNG, electricity and fuels. Through refineries and chemical plants, Eni processes crude oil and other oil-based feedstock to produce fuels, lubricants and chemical products that are supplied to wholesalers or through retail networks or distributors.