Eni and Total sign agreement for offshore exploration in Algeria

ENI and Total have signed an agreement with Sonatrach for offshore oil and gas exploration in Algeria.  

The exploration licences cover an area where Eni’s production assets are located (an area of 8,500 km² in the North Berkine basin).

Algeria is seeking to boost revenue via increased oil output following a crash in oil prices in 2014.

Eni has also made an agreement with Sonatrach to hold a 49% stake in three onshore oil blocks in the Algerian desert, which are estimated to contain 145m bbl of oil. Production is expected to start in 2020.

Eni's CEO, Claudio Descalzi, said: “Together with Sonatrach and Total, we will have the opportunity to explore the deep waters of the Algerian offshore, a virtually unexplored geological province.”