Italian Eni and Algerian state-owned Sonatrach signed an agreement towards strengthening their partnership for gas production in the Berkine basin in Algeria, the company announced on Wednesday.
The aim of the agreement is to create a gas hub in combination with the existing assets of BRN (block 403) and MLE (block 405b) in the region. Additionally, the two companies agreed the commercial conditions for the 2018-19 year, in line with the gas market, and agreed to begin negotiations to look into extending the gas supply beyond the contractual deadline of 2019.
Both companies also agreed to further strengthen their cooperation in petrochemicals, renewables, and offshore projects in Algeria and in other international cooperation opportunities.
Sonatrach has a presence in Algeria since 1981 and currently operates 32 mining permits in the country, with an equity production of over 100,000 barrels of oil equivalent per day.
By Gulsen Cagatay