Sonatrach & Eni Sign Several Cooperation Agreements

Source: 11/25/2018, Location: Africa

ALGER The National Hydrocarbons Company Sonatrach and the Italian group Eni signed in Algiers several cooperation agreements, particularly in the field of renewable energies, in the presence of the P-dg of the two companies respectively.

Abdelmoumem Ould Kaddour and Claudio Descalzi as well as the chairman of the steering committee of the National Agency for Hydrocarbon Resources Development (ALNAFT), Arezki Hocini. Thus, the first contract signed between Sonatrach and ENI, relates to a scientific cooperation for the realization of an intelligent solar laboratory at Bir Rebaa North (BRN) (Ouargla).

The purpose of this contract is to define the terms and conditions under which the two parties agree to launch a research and development project, for the realization of a smart solar laboratory, as well as the identification of innovative solutions and / or applications for use in Oil & Gas facilities at Bir Rebaa Nord facilities.

The objective is to locate the laboratory in a convenient area near the existing facilities and the 10 MW photovoltaic plant at the BRN site to benefit from the synergy with ongoing operations. It is also a question of providing a innovative combination of performance monitoring system installations in a hostile environment but also to entrust the management and development of the laboratory to a Sonatrach-ENI joint team.

Cooperation between the two parties will also provide training and exchange of know-how on renewable energy production systems and associated research and development.

The second contract initialed by the leaders of both groups concerns the implementation of the action plan for the development of renewable energies.

In addition, the two companies in this case Sonatrach and Eni as well as the Alnaft Agency have signed amendments to the exploration contracts for the sale of 49% of Sonatrach's interests in the three research areas Zemlet Elarbi, SIF Fatima and Orhoud. II for the benefit of the ENI group for which an agreement was signed on October 29 between Sonatrach and ENI.

These 25-year Research and Operations contracts will be 51% financed by Sonatrach and 49% by Eni. To this end, the Sonatrach-ENI association plans to carry out a first work program that includes an exploration program for an investment of over $ 80 million in order to drill 5 wells and acquire and treat 2.600 km2 of 3D seismic. In addition, a program of development work for the first phase, estimated at more than one (1) billion dollars, is planned for the construction of a compressor station, a condensate drain line, drilling of 18 development wells, a collection network for producing oil wells, a collection network for gas producing wells and their connection to a gas line.

This development program is expected to reach a cumulative production of 145 million TEPs including 14 GSm3 (billion standard m3) of dry gas.

As a reminder, the Research and Exploitation contract on the "Ourhoud II" scope was signed between Alnaft and Sonatrach in 2012, while the contractual scope of "Zemlet Elarbi" was awarded to Sonatrach by Alnaft in 2015. As for the research and exploitation contract on the "Sif Fatima II" scope, it was signed between Alnaft and Sonatrach last July.

As a reminder, the two parties had initialed in December 2017 a memorandum of understanding for the development of renewable energies.

The aim of this memorandum of understanding was to identify potential sites for solar energy production units in the Sonatrach Brownfields, to carry out feasibility studies, once the sites have been selected, and to develop a business model for the development of identified projects.

Speaking at the signing ceremony, Sonatrach Group's CEO emphasized the interest that foreign partners, especially ENI, have today in Algeria and the Sonatrach Group.

As such, he stressed that Sonatrach as part of its SH 2030 strategy is very much about foreign partnership. Nevertheless, and despite the progress made in this framework, Mr. Ould Kaddour believes that much remains to be done internally.

"All foreign partners want to work with us, but much remains to be done in-house," he said. The CEO of the Eni Group, for its part, highlighted the progress made by Sonatrach which has become, according to him, a "competitive" and "effective" company.

For more information about related Opportunities and Key Players visit Algeria Oil and Gas Projects

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