By: News central

Algerian energy giant Sonatrach and Italian oil company Eni have signed a major production-sharing contract worth $1.35 billion to explore and extract hydrocarbons in southeastern Algeria, the companies announced on Monday.

The 30-year agreement focuses on the Zemoul El Kbar area within the Berkine Basin, located around 300 kilometres east of Hassi Messaoud. The deal includes a seven-year phase dedicated to exploration and research, with an option to extend the full contract by a further decade.

The total investment earmarked for both exploration and development is estimated at $1.35 billion, with $110 million specifically allocated for research activities.

Sonatrach and Italy’s Eni Seal $1.35 Billion Energy Deal in Algeria
According to the statement, the contract is expected to yield around 415 million barrels of oil equivalent (BOE), including 9.3 billion cubic metres of natural gas, over its full duration.

Sonatrach CEO Rachid Hachichi described the deal as a significant milestone, highlighting its focus on deploying modern digital and technological innovations to boost productivity and improve resource recovery.

Eni, which has operated in Algeria since 1981, already collaborates with Sonatrach on managing the TransMed gas pipeline — a key link between Algeria and Italy via Tunisia.

Algeria remains the largest natural gas exporter on the African continent and ranks seventh globally.