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

On July 7 in the capital city of Algiers, Algeria, the Algerian national oil and gas corporation Sonatrach and the 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.

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

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

The research and exploration phase is set 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 meters of natural gas, during the life of the agreement.

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

For his part, ENI Director General 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 supplies from Russia. 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