SONATRACH and its partner Eni have signed a hydrocarbon production sharing contract to explore and develop the Zemoul El Kbar perimeter, located in the Berkine Basin approximately 300 km east of Hassi Messaoud. The agreement, signed under the provisions of Algeria’s Hydrocarbon Law No. 19-13, covers a period of 30 years with the possibility of a 10-year extension, including a seven-year exploration phase.
The total planned investment for the exploration and development of the area amounts to 1.35 billion US dollars, of which 110 million US dollars are allocated to exploration activities. The work programme will incorporate advanced technological processes, including cutting-edge digital solutions for operations, production optimisation, and enhanced reserves recovery.
A key focus of the agreement is on the utilisation of local content, with an emphasis on subcontracting national suppliers and service providers to maximise domestic economic participation.
Production from the Zemoul El Kbar development is expected to reach approximately 415 million barrels of oil equivalent (boe), including 9.3 billion cubic metres of natural gas, over the duration of the contract.
This contract follows the head of agreement signed by SONATRACH and Eni on 19 May 2024, marking a continuation of the strategic partnership between the two companies.
In addition to the Hydrocarbon Contract, SONATRACH and Eni also signed a Gas Agreement that outlines specific provisions for the marketing of dry gas from the Zemoul El Kbar perimeter, with quantities designated for export.
On the sidelines of the contract signing, SONATRACH, Eni, and ECU also entered into a three-year framework agreement aimed at developing the skills of SONATRACH personnel. The collaboration will focus on training and knowledge transfer through the ECU training institution, further strengthening capacity-building efforts within the Algerian energy sector.
For more information visit www.sonatrach.com
