Italy's Eni and SONATRACH, Algeria's state-owned oil and gas company, have signed a memorandum of understanding to strengthen cooperation in hydrocarbons, energy transition and renewable energies, with a focus on energy security and economic development
The signing took place during the Italy-Algeria intergovernmental summit in the presence of the President of the Democratic and Popular Republic of Algeria Abdelmadjid Tebboune and the Prime Minister of Italy, Giorgia Meloni.
Under the agreement, Eni and Sonatrach will consolidate cooperation for the enhancement of Algerian energy resources through new contracts aimed at increasing gas production, and the extension of gas supply contracts for export to Italy. The two companies will also strengthen collaboration in renewable energy and energy transition, through the development of new initiatives.
The MoU protocol follows the recent signing between Eni and Sonatrach of the agreement of the Zemoul El Kbar area and the allocation of the Reggane II area, which together with the initiatives covered by the protocol will contribute to increasing gas production up to 5.5 billion cubic metres per year by 2028, with total investments of more than US$8bn, as the country seeks international investment to boost oil and gas production. The National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) unveiled six new onshore licensing opportunities for conventional hydrocarbon exploration in 2024, as part of a five-year licensing plan designed to attract global upstream investors.
Eni has been present in Algeria since 1981, with an equity production of around 137,000 barrels of oil equivalent per day in 2024.
Eni and SONATRACH strengthen energy co-operation
The two companies will cooperate on renewable energy, as well as hydrocarbons and energy transition. (Image source: Adobe Stock)
