Algeria’s national oil and gas company, Sonatrach, has formalized a partnership protocol with Italy’s Eni and Norway’s Equinor. The announcement made by the company highlights the protocol’s objective to establish a cooperative framework between the entities, aimed at signing fuel contracts in designated areas of interest, specifically in In Salah and In Amenas.
Sonatrach has recently been involved in significant partnerships to enhance its gas production capabilities and extend its reach into renewable energy sources. A notable collaboration with TotalEnergies was announced on July 10, 2023, where several agreements were signed to bolster the production of natural gas in Algeria and the delivery of liquefied natural gas (LNG) to Europe. Additionally, this partnership aims to develop renewable energy projects in Algeria, focusing on solarizing exploration and production sites and studying the potential for renewable, low-carbon hydrogen for the export market .
Moreover, Sonatrach has signed natural gas contracts with TotalEnergies that include hydrocarbon contracts for the exploitation of Tin Fouye-Tabankort (TFT) II and TFT South fields in south-east Algeria. These contracts also cover liquefied natural gas and renewable energy, aiming to increase gas production at these fields to exceed 100,000 barrels of oil equivalent per day by 2026. This initiative is part of Algeria’s and TotalEnergies’ commitment to Europe’s energy supply and security, as well as supporting Algeria in the energy transition towards renewable sources.
In another strategic move, Sonatrach entered into a 25-year production-sharing contract with TotalEnergies, Occidental, and Eni for onshore blocks in the eastern part of Algeria. This agreement, under the 2019 Algerian Hydrocarbon Law, is expected to develop additional liquid hydrocarbon resources while implementing a carbon reduction program to lower carbon intensity in these fields. The partners have committed to investing $4 billion in the Berkine basin to produce 1 billion of oil equivalent barrels, thereby contributing to Algeria’s status as Africa’s biggest gas exporter and a significant supplier to the European market.
