Eni has inked a new production sharing contract (PSC) for blocks 404 and 208 in Algeria with SONATRACH, Oxy, and TotalEnergies.
These onshore blocks are located in Eastern Algeria’s Berkine basin, an area where Eni has had a presence since the 1980s.
As a result of the new Algerian hydrocarbon law, the partners will be able to boost investments, increase the fields’ hydrocarbon reserves, and extend their production life by 25 years. Additionally, it will contribute to diversifying Europe’s gas supply by providing opportunities for the future valorization of associated gas.
Through energy efficiency and decarbonization projects, the agreed-upon plan of activities will also improve the reserves recovery factor and reduce CO2 emissions.
Eni CEO, Claudio Descalzi, commented: “Through this new contract, additional volumes of gas will be made available for export and for the domestic market, coherent with Eni’s commitment to the energy transition.”