Algeria’s state energy giant Sonatrach and Italy’s Eni have signed a 30-year production-sharing contract worth $1.35 billion to tap fresh hydrocarbon reserves in the Zemoul El Kbar block of the Berkine Basin, about 300 km east of Hassi Messaoud.
The deal allocates an initial seven-year window for exploration and appraisal—with an optional 10-year extension—supported by a dedicated $110 million research budget. Total spending across the life of the contract is expected to recover some 415 million barrels of oil equivalent, including 9.3 billion cubic metres of natural gas.
Sonatrach chief executive Rachid Hachichi hailed the agreement as “a qualitative step” that leverages advanced digital tools and new technologies to boost well productivity and maximise recovery rates.
Eni, a partner in Algeria since 1981 and co-operator of the TransMed pipeline that carries Algerian gas to Italy via Tunisia, said the contract reinforces the two companies’ long-standing collaboration. Algeria is Africa’s leading natural-gas exporter and ranks seventh worldwide, and the new output is expected to bolster global supply security.