Algeria’s Sonatrach and Italy’s ENI sign an investment contract worth $1.4 billion

Sonatrach and the Italian group ENI signed today, Tuesday in Algiers, a hydrocarbons investment contract worth 1.4 billion dollars, in addition to a strategic agreement in the field of energy transition.

The two documents were signed by Sonatrach’s CEO, ToufikHakkar, and ENI’s CEO, Claudio Descalzi, in the presence of the Minister of Energy and Mines, Mohamed Arkab, and the Italian ambassador to Algeria, Giovanni Bogliazi.

The conclusion of the two agreements is the culmination of the two memoranda of understanding signed on December 10, 2020, in Algeria and on March 25 in Milan, Italy.

The first agreement concluded between the two parties today relates to a contract for exploration and production in the Berkine basin, which is the first since the promulgation of the new hydrocarbons law 19-13, as this contract falls under the production sharing formula.

As for the second concluded document, it consists of a “strategic agreement” in the field of energy transition, which aims to enhance cooperation in the technological field and to continue efforts aimed at “reducing the carbon footprint.”

This strategic agreement includes the joint development of renewable and new energies, especially in the fields of solar energy production, lithium exploration, biofuel production and hydrogen production (greens and blues).

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