Exploration and development activity is focused in the Bir Rebaa desert, located in the central-eastern part of the country, in blocks 403a/d (Eni 65%-100%), North ROM (Eni 35%), 401a/402a (Eni 55%), 403 (Eni 50%), 405b (Eni 75%) and 212 (Eni 22.38%). In the North Berkine basin, Eni's activities are concentrated in the Sif Fatima II, Zemlet El Arbi and Ourhoud II blocks, where we are 49% operators. We also hold 12.25% in the non-operated blocks 404 and 208. Our Algerian exploration and production operations are regulated by Production Sharing Agreement (PSA) concession contracts. In July 2018 Eni and Sonatrach agreed the extension of block 403, the agreement also includes the construction of a pipeline to connect BRN's assets with MLE with the aim of creating a gas hub. In the Sif Fatima II, Zemlet El Arbi and Ourhoud II concessions in the North Berkine Basin, the accelerated development of the estimated 75 million boe of reserves owned by Eni and an exploration campaign are underway. The oil wells were started up in May 2019. The production of gas fields will start at the same time as the start of the BRN-MLE pipeline. In December 2018, the consortium formed by Sonatrach, Eni and Total was granted two exploration permits to carry out seismic acquisition activities in the Algerian offshore sector. We are operators of the permit to the east called Skikda where in the spring of 2019 we acquired about 2,000 km² of 3D seismic and 200 km² of 2D seismic.

In July 2018 Eni and Sonatrach agreed the extension of Block 403. The agreement also includes the construction of a pipeline to connect the assets of Bir Rebaa North (BRN) with Menzel Ledjmet East (MLE) with the aim of creating a gas hub. In the Sif Fatima II, Zemlet El Arbi and Ourhoud II concessions in the North Berkine basin, the accelerated development of the estimated 75 million boe of reserves owned by Eni and an exploration campaign are underway. The oil wells were started up in May 2019.  During the same year, oil production start-up was achieved by means of seven production wells and the connection to the existing facilities of the BRN area in Block 403. In the first months of 2020, gas production began with the drilling of two wells and the connection of two additional wells to the existing facilities, following the completion of the pipeline from BRN to the MLE treatment plan in Block 405b, as well as of exploration and delineation activities in the area. The project will allow for the export of associated gas from Block 403 (BRN and BRSW) and the development of gas fields in the Berkine North's Blocks. Moreover, in 2019 activities yielded positive results also owing to the discovery of petroleum and natural gas in the Ourhoud II concession.

In 2019, development activities in Blocks 403a/d and ROM North, 401a/402a,  403, 405b, and 404, concerned production optimisation. Development activities in Block 208 concerned, instead, the continued development of the El Merk field with the drilling of production and water injection wells.

In July 2020 we signed a Memorandum of Understanding with Sonatrach, in the presence of the Minister of Energy, for joint work aimed at identifying exploration, development and production opportunities and extending the fast track development model successfully applied to the North Berkine project. Furthermore, agreements have been concluded for the gas marketing of the North Berkine Blocks and the commercial conditions of the gas import contract in Italy for the thermal year 2020-21.

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). Toufik Hakkar and Claudio Descalzi agreed to implement a program for relaunching exploration and development activities in the area, through optimizing existing infrastructures, and to accelerate the speed with which its solutions are brought to the market by leveraging on the local content, replicating the model already adopted successfully for the Berkine Nord project. Both the expansion of the Bir Rebaa North (BRN) photovoltaic plant and the creation of a new photovoltaic plant at the MLE site, which will supply clean energy to the existing gas treatment plant while reducing emissions resulting from self-consumption of gas, through the improvement of the energy efficiency of processes, the electrification of treatment plants and the abatement of fugitive methane emissions.

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 also signed a Memorandum of Understanding for the development of the partnership in the new technologies sector, with a focus on renewable energy, biofuels and hydrogen. This agreement aims to strengthen the cooperation already in place in the technological field and continue the decarbonization path undertaken to support the transition towards a low carbon future. 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.