Eni and Sonatrach to reinforce Algeria’s gas sector

algeria gasAlgeria seeks to boost its oil and gas industry. (Image source: Jeremy Oakley/Flickr)Sonatrach and Eni have signed an agreement aiming to strengthen their partnership in the Berkine basin, located in the eastern Algeria

The two Africa-focused oil and gas companies have signed this agreement in combination with the existing assets of BRN (block 403) and MLE (block 405b) and to create a gas hub in the area.

This agreement is a part of the framework agreement signed April 2018, at the “Technical Scientific Days” event in Orano.

The goal is to develop an ambitious programme to relaunch exploration and development in the area, by optimising existing infrastructures and putting them in synergy with the ones newly built including a 180Km line to quickly connect BRN with MLE’s assets, transforming it into the Berkine basin’s main gas hub.

Eni and Sonatrach also agreed on the commercial conditions for the 2018-19 thermal year, in line with the gas market. Additionally, as part of a strengthening of their cooperation and partnership, the two companies have agreed to begin a negotiation to look into extending the gas supply beyond the contractual deadline of 2019.

Speaking on the North Africa’s oil and gas project, Claudio Descalzi, CEO of Eni, commented, “This is a further step forward in the strategic expansion of our upstream activities in Algeria and in Eni’s renegotiation of long-term gas supply contracts. It also demonstrates a strong spirit of collaboration between Sonatrach and Eni, from exploration to the development of new projects in gas and renewable energy.”

The companies further agreed to strengthen their cooperation in petrochemical, renewables, offshore projects in Algeria and other international cooperation opportunities.

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