by Algeria’s National Oil and Gas Company Sonatrach, with its partner ENI, has formalized a 30-year contract for sharing hydrocarbon production for the exploration and development of the Zemoul El Kbar-perimeter, located in the Berkine Basin of the country.
The contract includes an exploration and development zone of 4,200 km², 300 km southeast of Hassi Messaoud. It integrates adjacent assets that were previously managed under different similarities.
The strategic partnership, governed by Hydrocarbon LAW 19-13, contains an option to expand another ten years and includes a seven-year research phase.
The agreement anticipates a total investment of $ 1.35 billion, with $ 110 million reserved for research.
The exploration and development efforts at Zemoul El Kbar will use advanced technology and digital solutions to optimize production and improve the recovery of reserves.
The contract also emphasizes the use of local content and gives priority to subcontractors to national suppliers.
The expected output from the Zemoul El Kbar area is estimated at 415 million barrels of oil equivalent (MBOE), including 9.3 billion cubic meters (BCM) gas, by the end of the contractual period.
This contract for sharing productions is the highlight of negotiations after the head of the agreement signed by Sonatraach and ENI on 19 May 2024.
In addition to the contract of the hydrocarbons, the parties have also signed a gas agreement with the marketing conditions for the dry gas produced, intended for export.
In combination, a framework agreement was signed between Sonatrach, ENI and ECU to improve the skills of Sonatrach employees through knowledge transfer and training of the ECU institution for three years.
In April 2025, Vallourec concluded a significant contract to deliver oil rand tubes (Octg) to Sonatrach.
“Sonatrach and ENI sign $ 1.35 billion 30-year-old Hydrocarbon Production Deal” was originally made and published by Offshore Technology, a Global Data brand.
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