- The agreement aims to increase gas production to 5.5 billion cubic meters per year by 2028.
- Total investments are projected to exceed $8 billion.
- The focus is on enhancing Algerian energy resources and extending gas supply to Italy.
- The collaboration includes initiatives in renewable energy and energy transition.
Agreement Overview
Eni and Sonatrach have signed a memorandum of understanding to enhance cooperation in hydrocarbons, energy transition, and renewable energies. The agreement was formalized during the Italy-Algeria intergovernmental summit, attended by Algeria's President Abdelmadjid Tebboune and Italy's Prime Minister Giorgia Meloni.
Key Objectives
The collaboration aims to boost Algerian energy resources through new contracts, increasing gas production and extending gas supply contracts for export to Italy. The companies will also focus on renewable energy and energy transition initiatives.
Investment and Production Goals
The protocol follows recent agreements on the Zemoul El Kbar and Reggane II areas, contributing to a target of 5.5 billion cubic meters of gas production per year by 2028. Total investments are expected to exceed $8 billion.
Strategic Importance
Eni, present in Algeria since 1981, is a key international player in the country, with an equity production of about 137,000 barrels of oil equivalent per day in 2024. This agreement underscores the strategic importance of Algeria in Eni's energy portfolio.
