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Eni and Sonatrach look at Berkine basin gas hub

Jul 19, 2018
2 min read
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Eni and Sonatrach agreed to discuss working together on the Berkine basin and extending a gas supply deal beyond 2019.

In combination with the existing assets of BRN (block 403) and MLE (block 405b), the aim is creating a gas hub in the area, Eni said in a statement.

The chairman and general director of the Algerian state company Sonatrach, Abdelmoumem Ould Kaddour, and the chief executive officer of Eni, Claudio Descalzi, signed a deal that represents a further step towards the strengthening of their partnership in the Berkine basin.

The deal aims to develop an ambitious program to relaunch exploration and development in the area, by optimising existing infrastructures and putting them in synergy with the ones newly built: a 180 kilometre line that will quickly connect BRN with MLE’s assets, transforming it into the Berkine basin’s main gas hub. 

Eni and Sonatrach also agreed to the commercial conditions for the 2018-19 thermal year, in line with the gas market. Additionally, as part of a strengthening of their cooperation and partnership, the two companies have agreed to begin a negotiation to look into extending the gas supply beyond the contractual deadline of 2019.

Eni CEO, Claudio Descalzi, said: "This is a further step forward in the strategic expansion of our upstream activities in Algeria and in Eni’s renegotiation of long-term gas supply contracts. It also demonstrates a strong spirit of collaboration between Sonatrach and Eni, from exploration to the development of new projects in gas and renewable energy.”

Eni and Sonatrach also agreed to further strengthen their cooperation in petrochemical, renewables, offshore projects in Algeria and other international cooperation opportunities.

Eni has had 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, making the company the country’s main international player.

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