Our work in Algeria

We’ve been present in the country since 1981, and it is becoming the top supplier of gas for Italy. We are considering the launch of new projects in the country in the sectors of renewables, hydrogen, capture, use, carbon dioxide storage and biorefining, in line with the commitment to achieve carbon neutrality by 2050.

Algeri-citta.jpg

Initiatives for the gas supply

In line with Eni’s distinctive strategy to address the challenges of the current energy market, on 7 September 2022 we acquired BP’s business in Algeria, operating two major gas fields “In Amenas” and “In Salah”. This acquisition has a great strategic value to further contribute to Europe’s gas needs and further strengthens our presence in Algeria, increasing our portfolio of assets in the country.

On 15 July 2022, Algeria announced that starting from the second half of July 2022 it will supply 4 billion cubic metres of gas to Italy. Algeria is one of the key sources for gas imports and this decision reflects the deep-rooted historical ties with the country.

 April 2022, Eni's Chief Executive Officer, Claudio Descalzi, met with the Prime Minister, Aymen Benabderrahmane and the Minister of Energy, Mohamed Arkab in Algiers to discuss the company's current and future activities in Algeria as well as the issues related to the current energy crisis.

Claudio Descalzi Chief Executive Officer

The agreements for the diversification of energy sources

We work closely with producing countries, partners and local institutions to progressively differentiate our global portfolio.

DISCOVER MORE

Energy from gas in the desert

In July 2022 Eni and Sonatrach announced a further discovery in Sif Fatima II concession, located in the Berkine North Basin in the Algerian desert. The Rhourde Oulad Djemaa Ouest-1 (RODW-1) exploration well, in the Sif Fatima II research perimeter, is the third well in the exploration drilling campaign. It led to a discovery of oil and associated gas in the Triassic sandstones of the Tagi reservoir. During the production test, the well produced 1,300 bbl a day of oil and about 2 mmscfd of associated gas.

In the same month we signed with Sonatrach, Oxy and TotalEnergies a new PSC for blocks 404 and 208 in Algeria. These blocks are located onshore in the Berkine basin. The contract will also create the opportunity for future valorisation of significant quantities of associated gas which might become available for export, contributing to the diversification of gas supplies to Europe. Exploration and production activities in Algeria are regulated by Production Sharing Agreements (PSAs) and concession contracts.  Activities are located in the Bir Rebaa desert, in the Central Eastern area of the Country in several operated exploration and production assets. In addition, Eni holds interest in the nonoperated Block 404 and Block 208 with a 12.25% interest. During 2021 Eni and Sonatrach signed several agreements in the exploration and production, research and development as well as decarbonization initiatives. In particular: upgrading exploration and development activities in the Berkine area, also planning for the construction of an oil and gas development hub in synergy with the existing MLE-CAFC facilities. In March 2022, we awarded a new PSC in the basin of Berkine South (Eni operator with a 49% interest) and in April, leveraging its consolidated partnership with the country, we signed framework agreement with Algeria to boost joint E&P operations and increase natural gas exports towards Europe.

enrico-mattei-detail-launch.jpg

Enrico Mattei and Algeria. An unforgettable friend (1962-2022)

A book contains archival documents, articles, photos and unpublished material: traces the relationship between Mattei, Algeria and Italy.

DISCOVER MORE

We create energy

In Algeria we have built a photovoltaic plant in Bir Rebaa North and we will strengthen our presence in the Algerian desert with the development of the Upstream project in Berkine. Moreover, to contribute to the country's policy aimed at expanding access to maternal and childcare services in the South of the country, in June 2021 through Eni Foundation we signed a Memorandum of Understanding with the Ministry of Health, Population and Hospital Reform of the People's Democratic Republic of Algeria. In particular, the Foundation will provide support to strengthen specific services in the region's hospitals by supplying medical equipment and training health personnel, as well as extending home services in remote areas of the South through the support of mobile clinics, with the aim of contributing to the reduction of diseases and maternal-infant mortality.

 

The energy of the sun to reduce greenhouse gases

The Bir Rebaa North (BRN) photovoltaic plant will supply electricity to the field's production facilities and contribute to the reduction of greenhouse gas emissions. To strengthen our partnership in the renewable energy sector, we will also set up a research laboratory with Sonatrach to test solar technologies in a desert environment and set up a joint venture to create and operate solar power plants at Sonatrach's production sites in the country.

Discover Bir Rebaa North
Discover Bir Rebaa North

Agreements to discuss the energy transition

As a part of the Eni’s portfolio optimization strategy, aimed at growth in the areas related to the energy transition, was signed a sale agreement with Snam for the sale of 49.9% of Eni’s stake (directly or indirectly) in the companies that manage the onshore gas pipelines running from the Algerian and Tunisian borders to Tunisia’s coast (TTPC) and the offshore gas pipelines connecting the Tunisian coast to Italy (TMPC).  This operation allows to create synergies among the parties’ expertise in gas transport on a strategic route for the security of the natural gas supply in Italy. During a meeting in July 2021 Sonatrach and Eni agreed to accelerate cooperation in the technological field, building on the Memorandum of Understanding the two companies signed last March in Milan, with specific focus on hydrogen production, using electricity generated from renewable sources (solar and wind). In addition, in order to preserve the country's water resources, the use of water produced by oil fields will be evaluated for the electrolysis processes necessary for the production of hydrogen, appropriately treated through dedicated plants. In December 2021, we expanded our strategic partnership with Sonatrach, also with a memorandum of understanding for cooperation on initiatives in the energy transition. The agreement provides for the assessment of joint opportunities in the fields of renewableshydrogen, the captureuse and storage of CO2, bio-refining, and many other initiatives in line with the companies’ respective decarbonisation objectives. In March 2021 we signed a news series of agreements that mark a further step forward in strengthening the partnership between the two companies. The first of the agreements signed aims to implement an ambitious program for the relaunch of exploration and development activities in the Berkine basin region and provides for the creation of a gas and crude oil development hub. We have also agreed to collaborate in other sectors such as staff training, through the signing of an agreement that provides for cooperation between Eni Corporate University and the Institut Algerien du Petrole for the implementation of training programs in the Upstream and new technologies related to the energy transition fields. In December 2020 the Algerian Minister of Energy, Abdelmadjid Attar, met our Chief Executive Officer Claudio Descalzi to take stock of the company’s activities in the country, future projects and to discuss the energy transition. Claudio Descalzi also met with the CEO of Sonatrach, Toufik Hakkar. During the meeting, an agreement was signed detailing the roadmap for a new hydrocarbon contract in the southern area of the Berkine Basin. The agreement falls within the memorandum of understanding aimed at collaboration in the upstream sector signed last July and has the goal of creating a new gas and oil development hub in the region through synergies with the existing assets of MLE-CAFC (Block 405b).