In the presence of Algeria's Minister for Energy, Abdelmadjid Attar and CEOs of the two companies respectively MM. Toufik Hakkar and Claudio Descalzi, the two parties signed a memorandum of understanding (MoU) to identify the possibilities of investing jointly in the exploration and production of hydrocarbons in Algeria under the new Hydrocarbons Law.
The MoU also covers the examination of international exploration and production opportunities. Three gas agreements were also signed relating to the marketing by SONATRACH, on behalf of the parties, of dry gas from the Ourhoud II, Sif Fatima II and Zemlet El Arbi perimeters, with an annual volume nearly 1.5 billion m3, until 2049.
In addition, an amendment to the gas sales contract was signed between SONATRACH and ENI, setting the commercial conditions for the gas year 2020-2021. The said contract, dating from 1977, was renewed in May 2019 for the supply of the Italian market for a period of eight (8) firm years until 2027, plus two additional optional years.
For the Chairman and CEO of SONATRACH, the MoU will strengthen relations between the two parties in the fields of exploration and exploitation in Algeria. “There are many opportunities that we need to explore together. It will also involve assessing international opportunities and developing solar energy projects at the level of the SONATRACH -ENI deposits,'' said Mr. Hakkar.
For Mr. Descalzi, despite the international economic situation of the energy sector which required the decrease of the investments of the Italian company by almost 35%, ENI decided to continue and stay with a full budget in Algeria. "This shows that we are working well with our partners in terms of time and procedures,'' he said.
According to SONATRACH, the agreements confirms the desire of the two parties to develop their partnership in various segments of the oil and gas industry as well as in the field of renewable energies. ENI has more than 12 cooperation contracts with SONATRACH in the exploration and exploitation.