Eni and Sonatrach deepen ties to accelerate decarbonisation

Italy’s Eni and Algerian state company Sonatrach have signed various agreements in the upstream, research and development and decarbonisation sectors.

The deals, which cover the exploration and production, research and development, decarbonisation and training fields, further strengthens the partnership between the firms.

Eni and Sonatrach will relaunch exploration and development activities in the Berkine basin region.

The programme will also enable the creation of a gas and crude oil development hub through a synergy with existing Menzel Ledjmet East (MLE)-Central Area Fields Complex (CAFC) installations.

Eni said that the deal forms part of the new hydrocarbon contract finalisation process in the basin. It is planned to be signed under the support of the new Algerian oil law.

The two parties also signed a memorandum of understanding (MoU) to develop technologies with focus on renewable energy, biofuels and hydrogen sectors.

Eni said in a statement: “This agreement aims to strengthen the cooperation already in place between the two companies in the technological field and continue the decarbonisation path undertaken to support the transition towards a low carbon future.”

Additionally, Eni signed an agreement with Sonatrach to work on sectors such as staff training.

As part of the deal, Eni Corporate University will cooperate with the Institut Algerien du Petrole to implement training programmes in the upstream sector and new technologies related to the energy transition fields.

Eni CEO Claudio Descalzi said: “Today’s agreements represent the commitment made by our companies to strengthen a historic partnership, in compliance with a shared strategy to accelerate the development of decarbonisation projects as part of our commitment of achieving our carbon neutrality goal.”

Last year, Eni and Sonatrach completed the construction of a 185km gas pipeline in the onshore Berkine basin of Algeria.