Italian energy company Eni and Algerian state oil company Sonatrach signed several agreements aimed at strengthening integration between the two companies in jointly-operated activities in Algeria, Eni announced Tuesday.
The Chairman and General Manager of the Algerian state company Sonatrach, Abdelmoumem Ould Kaddour, and the Chief Executive Officer of Eni, Claudio Descalzi, signed the agreements.
The agreements will lead to significant cost savings and improved operational efficiency, the press release showed.
"The launch of an ambitious exploration and development program in the Berkine Basin will be particularly important. It will lead to the production of new gas reserves through the use and optimization of existing infrastructures," it added.
The press release also revealed that Eni and Sonatrach have also signed specific agreements to continue their collaboration in the research and development sector, following on from agreements concluded in November 2016.
"The renewed collaboration between our companies, enshrined in today's agreements, allows Eni to make a further important step forward in a key country like Algeria and to consolidate further our strategic partnership with Sonatrach.
"Furthermore, the forthcoming construction of a renewable energy laboratory and of a photovoltaic plant at the BRN production site is another step in Eni's decarbonization process. This process includes the development of green businesses through increasing commitment to renewable energy sources and to scientific and technological research," Descalzi said in the press release.
Eni has been present in Algeria since 1981 and currently participates in 32 mining permits. The company has an equity production in the country of about 100,000 barrels of oil equivalent a day, making it the main international player in the country.
By Muhsin Baris Tiryakioglu