Eni has acquired the assets of BP in Algeria, including two major new ones gas fields. The acquisition, explains the group led by Claudio Descalzi, has strong strategic value and helps to further meet the European gas needs, as well as strengthening Eni's presence in Algeria, an important gas producer as well as a key country for Eni. Eni's announcement comes just as tensions are skyrocketing with Russia, which is threatening to block gas and oil supplies to countries that adopt gas price caps. On Friday, the EU Council must decide on this measure.
Eni, present in Algeria since 1981, following this operation and the development programs already underway in the Berkine basin, sees in 2023 production in the African country rise to over 120.000 barrels of oil equivalent per day, "further confirming the company's leadership as the leading international energy company operating in the country," said a statement.
Eni shares listed on the Stock Exchange late in the morning at 11,93 euros, down 0,15%.
“In Amenas” and “In Salah” produced 2011 billion cubic meters of gas in 11
In detail, among the assets purchased by BP in Algeria there are “In Amenas” and “In Salah”, two concessions for the production of gas (with a working interest of 45,89% and 33,15% respectively).
“In Amenas” and “In Salah”, operated jointly with Sonatrach e Equinor, are located in Southern Sahara and their gas and associated liquids production, started in 2006 and 2004 respectively, amounted to approximately 2021 billion cubic meters of gas and 11 million barrels of condensates and LPG in 12.
“Today's transaction, subject to regulatory approvals, will enable the company to expand its portfolio of assets in the country and, combined with the recently signed Berkine South and Block 404/208 contracts, will enable new and synergistic opportunities development, mainly focused on increasing gas production,” said a statement.
The stages of Eni's agreements with Algeria
In March Eni and Sonatrach - the Algerian public hydrocarbon giant - have discovered a new maxi field in Algeria with a potential of 140 million barrels of oil in place which could start as early as this quarter. The well is the first in a new exploration campaign which includes another five drillings in concessions in the Algerian desert.
In April 2022, Descalzi, together with Foreign Minister Di Maio, had met in Algiers with the Algerian Prime Minister, Aymen Benabderrahmane and the Minister of Energy, Mohamed Arkab, to take stock of the company's activities in Algeria, future projects and to discuss of issues related to the current energy crisis. In July, Algeria announced that it will supply an additional 4 billion cubic meters of gas to Italy, starting in the second half of July 2022.
