#Algeria #Country Updates #News #Upstream Exploration & Production

Sonatrach & ENI Sign Several Cooperation Agreements Mainly in the Gas Sector

SONATRACH and Italian group ENI have signed  several cooperation agreements in the gas sector and a memorandum of understanding on the possibilities of investment in the exploration and production of hydrocarbons .

The two parties signed a memorandum of understanding (MoU) in the presence of the Minister of Energy, Abdelmadjid Attar and CEOs of the two companies respectively MM. Toufik Hakkar and Claudio Descalzi, to identify the possibilities of investing jointly in the exploration and production of hydrocarbons in Algeria under the new Hydrocarbons Law. The MoU also covers the examination of international exploration and production opportunities.

Three (03) gas agreements were also signed relating to the marketing by SONATRACH, on behalf of the parties, of dry gas from the Ourhoud II, Sif Fatima II and Zemlet El Arbi perimeters, with an annual volume nearly 1.5 billion m3, until 2049.

In addition, an amendment to the gas sales contract signed between SONATRACH and ENI, setting the commercial conditions for the gas year 2020-2021. The said contract, dating from 1977, was renewed in May 2019 for the supply of the Italian market for a period of eight (8) firm years until 2027, plus two additional optional years.

During a press briefing on the sidelines of this signing ceremony, the Minister of Energy welcomed the continued partnership relations between the two energy groups, recalling that ENI has more than 12 cooperation contracts with SONATRACH in the exploration and exploitation.

“ENI is a historic and leading partner for Algeria in the energy sector”, reaffirmed Mr. Attar, stressing the interest of developing cooperation between the two parties in the sectors upstream, downstream and in marketing in a common interest.

For the CEO of SONATRACH, the MoU will strengthen relations between the two parties in the fields of exploration and exploitation in Algeria.

“There are many opportunities that we need to explore together. It will also involve assessing international opportunities and developing solar energy projects at the level of the SONATRACH -ENI deposits, ”said Mr. Hakkar.

For Mr. Descalzi, despite the international economic situation of the energy sector which required the decrease of the investments of the Italian company by almost 35%, “ENI decided to continue and stay with a full budget in Algeria”.

“This shows that we are working well with our partners in terms of time and procedures,” said the Italian representative.

According to a SONATRACH “this meeting confirms the desire of the two parties to develop their partnership in various segments of the oil and gas industry as well as in the field of renewable energies”.

Source: OilnewsKenya

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