In a meeting with the Algerian Minister of Energy, Abdelmadjid Attar, the Chief Executive Officer of Sonatrach, the state-owned oil company, Sonatrach, Toufik Hakkar, and the Chief Executive Officer of Eni, Claudio Descalzi signed a Memorandum of Understanding (MOU) to expand collaboration in upstream activities today July 1st 2020.
Both companies discussed extensively on the future of oil in the country. They reviewed the completion of the construction of the gas pipeline linking Bir Rebaa Nord (BRN) and Menzel Ledjmet Est (MLE), the production sites in the Berkine Basin.
They both reaffirmed their commitment to speed up the Berkine Nord project that commenced production last February, a year after the signing of the relevant agreements. This is intended to export 6 million standard cubic metres (mscm) of gas per day by the end of 2020.
Both parties agreed to leverage on the capacity of the companies contracted by Sonatrach group to execute the works. The signed agreement allows for joint efforts by both companies to identify potential fields to explore, develop and produce in accordance with the Hydrocarbons law governing the country. It was agreed to extend the development model successfully applied to fast track the North Berkine project.
They also agreed on the gas marketing of the North Berkine Blocks and the commercial condition of the gas import contract in Italy for the thermal year 2020 – 2021.
Discussions on the installation and management of plants for the production of solar energy in the production sites operated by both companies. After the expansion the BRN photovoltaic system that was built at the end of 2018, feasibility studies will be carried out for the creation of a new photovoltaic system at the Menzel Ledjmet Est (MLE) which will supply clean energy to the existing plant for gas treatment.
All the discussed points and agreements conforms to the strategy individually set out by both companies to change their energy mix and have low carbon emission to reduce the negative impact of oil activities on the environment.
At the end of the meeting, the CEO of ENI said “This meeting is a testament to the commitment of Sonatrach and Eni to expand their partnership in Algeria, furthering their shared strategy of accelerated development of the projects and pursuing the decarbonisation objectives as part of our commitment to achieve long-term carbon neutrality by reducing and offsetting climate-altering gas emissions.”