Algeria’s state energy giant Sonatrach and Italian oil major Eni have signed a $1.35 billion production sharing contract to explore and develop hydrocarbons in southeastern Algeria.
The 30-year agreement focuses on the Zemoul El Kbar area in the Berkine Basin, located 300 kilometres east of Hassi Messaoud.
A seven-year research and exploration phase is included, with the possibility of extending the deal for an additional decade.
Out of the total investment, $110 million will be dedicated specifically to exploration activities aimed at uncovering new reserves.
The partnership targets the recovery of 415 million barrels of oil equivalent, including 9.3 billion cubic metres of natural gas.
Sonatrach CEO Rachid Hachichi called the deal a “qualitative step” towards employing advanced digital and technological tools in energy production.
He said the agreement would enhance well productivity and improve the recovery of existing reserves, marking a new era in operational efficiency.
Eni, active in Algeria since 1981, also co-manages the vital TransMed gas pipeline linking Algeria to Italy via Tunisia.
Algeria remains Africa’s top natural gas exporter and ranks seventh globally, reinforcing its strategic energy role in the Mediterranean.
