Gas, all the details on the contract signed in Algeria by Eni, Total, Occidental and Sonatrach
What does the gas contract signed in Algeria by Eni, Total, Occidental and Sonatrach foresee. Facts, numbers and comments
On gas, agreement in Algeria between Eni, Total, Occidental and Sonatrach.
Here are all the details
THE WORDS OF SONATRACH
“Algeria is linked to Italy by a transport contract for 30 billion cubic meters of gas per year”. This was stated by the CEO of Sonatrach itself, Toufik Hekkar speaking on news TV Al 24 News , after signing the contract with Eni, TotalEnergies and Oxy in Algiers. Hekkar added that "Italy is qualified to be Algeria's gateway to Eastern European markets". Hekkar continued: "We plan to sign two to three new contracts by the end of this year." "Recent findings confirm that Algeria is still attractive for investment."
WHAT IS INCLUDED IN THE CONTRACT SIGNED BY ENI, SONATRAC, OCCIDENTAL AND TOTAL IN ALGERIA
A total investment of 4 billion dollars in the prolific Algerian basin of Berkine, located east of the Hassi Messaoud hub, for an “extra” production over time of 1 billion barrels of oil and gas equivalent added together. This is what is foreseen in the contract signed today in Algiers by the oil companies Eni , Sonatrach, Occidental and TotalEnergies.
The contract was signed under the new Algerian hydrocarbon law of 2019 and will allow partners to enhance investments, increasing the oil reserves of the fields and extending their productive life for an additional 25 years. Furthermore, it will also allow the future exploitation of significant quantities of associated gas that could become available for export, contributing to the diversification of gas supplies to Europe.
IN THE FRAME OF THE MEMORANDUM OF JANUARY 2021
According to reports from the Algerian company Sonatrach in a press release, the PSC type contract (production sharing contracts) is part of a memorandum of understanding between Sonatrach and its partners on January 31, 2021. In the frame, the Algerian company reports, all parties have undertaken to conduct the development and study of this perimeter through a program of works that include: the use of high-density 3D seismic acquisition and treatment technology; the drilling of 100 oil wells; the conversion of 46 wells, mainly with the Wag process (cyclical process of injection of alternating water followed by gas); the realization of masterplans and structural optimization studies; the creation of digital solutions for oil fields; the implementation of two Eor-type pilot projects (advanced oil recovery); the implementation of environmental studies and projects relating to the low CO2 footprint.
4 BILLION DOLLAR INVESTMENT
According to Sonatrach, the total amount of investment for the implementation of this development and exploitation plan is estimated at around 4 billion dollars and will allow over time the recovery of over 1 billion barrels of hydrocarbons equivalent to oil in the affected area. , increasing the average recovery rate of hydrocarbon resources by 55 percent. Blocks 404 and 208 of the Berkine basin are located east of the Hassi Messaoud hub, in turn connected by oil and gas pipelines to Hassi R'Mel, where the Enrico Mattei pipeline that carries Algerian gas to Italy passes through: a strategic position, therefore, which facilitates the export of hydrocarbons abroad.
ON THE MARGIN OF THE ITALIAN-ALGERIAN INTERGOVERNMENTAL SUMMIT
"As regards the energy sector, tomorrow (today, ed) we will sign an important agreement between Eni, Total and Occidental for an amount of 4 billion dollars to supply Italy with large quantities of gas", said yesterday the president of 'Algeria, Abdelmadjid Teboune, during the joint press conference in Algiers with the Prime Minister, Mario Draghi.
For his part, Draghi had said that the fourth Italian-Algerian intergovernmental summit held yesterday in Algiers "confirmed the privileged partnership" in the energy sector.
DRAGHI: ALGERIA THE FIRST GAS SUPPLIER IN ITALY
“In recent months, Algeria has become our country's leading gas supplier. Sonatrach has announced the forthcoming release of 4 billion cubic meters of gas to Italy as part of the agreement signed with Eni in April. This is an acceleration compared to what was expected and anticipated and even more conspicuous furniture in the coming years ”, added Draghi.
Indeed, the Prime Minister's visit was preceded by Algeria's announcement of an increase in the volume of its gas supplies to Italy by another 4 billion cubic meters starting next week.
According to the Algerian news agency "Aps", the additional gas will be delivered by the energy company Sonatrach to Eni and the other Italian partners starting from next week. Also according to the Algerian press agency, since the beginning of the year, Algeria has already delivered 13.9 billion cubic meters to Italy, exceeding the announced volumes by 113 per cent, and plans to deliver by the end by 2022 another six billion cubic meters of gas.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/gas-tutti-i-dettagli-sul-contratto-firmato-in-algeria-da-eni-total-occidental-e-sonatrach/ on Tue, 19 Jul 2022 13:37:41 +0000.