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Two leading oil and gas corporations in the world signed a huge contract

On July 7 in the Algerian capital of Algiers, Algeria's national oil and gas corporation Sonatrach and Italian energy group ENI signed a hydrocarbon production sharing contract worth 1.35 billion USD to explore and exploit oil and gas in the Zemoul El Kbar area, southeast of the country.

Báo Thanh HóaBáo Thanh Hóa08/07/2025

Two leading oil and gas corporations in the world signed a huge contract

Headquarters of Algeria's national oil and gas corporation Sonatrach. (Source: energy)

The 30-year contract, with an option to extend for another 10 years, will focus on operations in the Berkine basin, about 300km east of Hassi Messaoud, Sonatrach said in a statement.

The research and exploration phase is scheduled to last seven years, with an expected investment of $110 million out of a total investment of $1.35 billion.

The contract aims to produce approximately 415 million barrels of oil equivalent (BOE), including 9.3 billion cubic metres of natural gas, during the life of the agreement.

According to Sonatrach CEO Rachid Hachichi, the agreement is a “qualitative step forward,” enabling the application of digital technologies and advanced techniques to improve well performance and optimize reserve recovery.

For his part, ENI General Director Claudio Descalzi - who was received by Algerian President Abdelmadjid Tebboune - affirmed that this is a "new step" in strategic cooperation between the two corporations.

Present in Algeria since 1981, ENI currently manages, together with Sonatrach, the TransMed gas pipeline connecting Algeria to Italy via Tunisia. Algeria is currently the leading natural gas exporter in Africa and the seventh largest globally.

Since the Ukraine crisis, Italy has stepped up energy cooperation with Algeria to reduce its dependence on Russian supplies. In July 2022, the two countries signed a $4 billion production-sharing contract./.

According to VNA

Source: https://baothanhhoa.vn/hai-tap-doan-dau-khi-hang-dau-the-gioi-ky-hop-dong-gia-tri-lon-254274.htm


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