SONATRACH and Eni have signed a production sharing contract to explore and develop the contractual perimeter of Zemoul El Kbar, located in the Berkine Basin some 300 km East of Hassi Messaoud
This agreement concluded under the aegis of hydrocarbon law n°19-13 is for a duration of 30 years and could be extended by 10 additional years. It includes a period of research of 7 years. The overall investments planned for exploration and development on this perimeter amount to 1,35 billion US$, of which 110 million US$ allocated to research investments.
The works schedule relating to this hydrocarbon contract includes recourse to innovative technological processes, integrating the latest digital solutions pertaining to operating, the use of new technologies of production optimization and reserves recovery. In addition, recourse to local content and subcontracting of national suppliers is privileged, within the frame of this contract.
The expected production in the framework of the development of Zemoul El Kbar area is estimated at 415 million bep of which 9.3 billion cubic meters at the end of the contractual period.
As a reminder, the signing of this production sharing contract is the outcome of works related to the Head Of Agreement concluded between SONATRACH and Eni on 19 May 2024.
In addition to the Hydrocarbons Contract for the exploration and exploitation of hydrocarbons on the Zemoul El Kbar perimeter, concluded between SONATRACH and Eni, the two Parties also signed a Gas Agreement whose purpose is to specify the provisions of the Hydrocarbons Contract relating to the marketing of quantities of dry gas from the Zemoul El Kbar Exploitation Perimeter, intended for export.
Also, on the sidelines of this signing, a framework agreement was concluded between SONATRACH, Eni and ECU, aimed at developing the skills of SONATRACH staff and transferring of know-how through the ECU training institution, for a period of three (3) years.
Source: Sonatrach
