Eni Grows North African Presence

Eni has agreed with Algeria’s Sonatrach to take 49% of three onshore oil blocks while also signing an offshore exploration deal along with Total.

Italian firm Eni is increasing its Algeria acreage, signing a deal on 29 October during a conference in Algiers, to take three onshore oil concessions, the Sif Fatima II, Zemlet El Arbi and Ourhoud II, all situated in the North Berkine Basin. The basin, in the east of the country in the Algerian desert, is home to all of Eni’s Algerian output. Eni’s net Algeria output last year came to 68,000 b/d of oil and 117mn cfd of gas.

Eni will take 49% of each of the three concessions, with state firm Sonatrach retaining 51%.

“Eni and Sonatrach will carry out an important exploration program in order to develop the reserves of the three blocks, estimated at 145mn barrels of oil equivalent. Production is expected to start by the end of 2020,” Eni says. (CONTINUED - 683 WORDS)