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.
In January 2023 Eni CEO, Claudio Descalzi, and the CEO of Sonatrach, Toufik Hakkar, signed in Algiers two agreements which outline future joint projects on energy supply, energy transition and decarbonisation. The companies will conduct studies to identify possible measures to improve Algeria's energy export capacity to Europe. In addition, Eni and Sonatrach will identify opportunities for the reduction of greenhouse gas and methane gas emissions and will define energy efficiency initiatives, renewable energy developments, green hydrogen projects and carbon dioxide capture and storage projects, to support energy security and at the same time a sustainable energy transition.
Eni CEO Claudio Descalzi commented: “The partnership between Italy and Algeria gets stronger today, and Algeria's key role as one of Europe's main energy suppliers is confirmed”.
In line with Eni’s global net-zero strategy and as part of a wider decarbonization plan, to promote the development of renewable energy sources in Algeria, on 17th November 2022 we have laid the first stone of a 10MW photovoltaic plant in Bir Rebaa North (BRN) in the Berkine basin and inaugurated Solar Lab. This laboratory, open to universities and other public institutions for research purposes, is equipped with different types of photovoltaic panels. They will be tested in the extreme irradiation conditions of southern Algeria, allowing the collection and analysis of data. The BRN Solar Lab is a twin of the one already built at the Eni Research Center in Novara. It will allow homogeneous comparisons of the behaviour of photovoltaic devices between the two locations, which have different irradiation and climate.
The photovoltaic plant will be the second one linked to the BRN facility, to further contribute to decarbonize the facility’s hydrocarbon production. Together with an existing 10MW photovoltaic facility launched in 2018, it will double the renewable energy available to power the upstream processes. It will be followed by another PV facility at the Menzel Ledjmet East Project (MLE) production complex, also in the Berkine Basin, whose construction is expected to begin in 2023.
On February 2023, in alignment with the company’s strategy, addressed to tackle the challenges of the European markets, we closed the acquisition of BP’s business, involving the assets of InAmenas and In Salah, two gas production concessions operated jointly with Sonatrach and Equinor. This transaction, announced on 7 September 2022, is of a great strategic value as it further contributes to meeting Europe’s gas needs and to strengthen Eni’s presence in Algeria.
Eni's equity production in the country is envisaged to rise to approximately 130,000 barrels of oil equivalent per day in 2023, which confirms its role as the major international energy company operating in Algeria.
In November 2022 we announced the start-up of a new oil field, that is currently producing 10,000 barrels of oil per day (bod), in Zemlet el Arbi concession in the Berkine North Basin.
In October 2022, in support of the Europe gas demand, Eni announced the start of production from two gas fields within the new Berkine South contract, just 6 months after the contract was awarded through an accelerated development (fast track). Berkine South has a production capacity of 1 million standard cubic metres per day of gas (MSm3/d), and approximately 4,000 barrels per day of associated liquids.
On 15 July 2022, the country 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.
On 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 activities and future developments in Algeria as well as the issues related to the current energy crisis.
In July 2022Eni 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.
Global Gas & LNG Portfolio
Below are the 2022 figures for gas supplied in the country.
11.86
bcm
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 supply electricity to the field's production facilities and contribute to the reduction of greenhouse gas emissions. In November 2022 we have laid the first stone of a second photovoltaic plant and inaugurated Solar Lab.
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 July2021Sonatrach 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 renewables, hydrogen, the capture, use 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).
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The latest news about Eni in Italy and the wider world.
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