The new contract, according to the presentation made, covers the contractual perimeter of Berkine (Blocks 404 and 208), located 300 km south-east of Hassi Messaoud (Ouargla)
The Algerian group Sonatrach signed, Tuesday in Algiers, a hydrocarbons contract for an amount of nearly 4 billion dollars, relating to the development of the contractual perimeter of Berkine (Ouargla / south of the country), with the American ” Occidental Petroleum”, the Italian “Eni” and the French “Total Energies”.
The document was initialed by the CEO of Sonatrach, Toufik Hakkar, the CEO of “Western Petroleum”, Ms. Vicki Hollub, the CEO of “Eni”, Claudio Descalzi, and the vice-president of operations and production in the Middle East and North Africa of “Total Enrgies”, Laurent Vivier.
The signing ceremony took place at the headquarters of the Algerian group under the chairmanship of the Algerian Minister of Energy and Mines, Mohamed Arkab, in the presence of the ambassadors of the United States, Italy, and France in Algeria, respectively Mrs. Elizabeth Moor Aubin, Giovanni Pugliese, and François Gouyette, as well as the Algerian ambassador to Rome, Abdelkrim Touahria.
The new contract, according to the presentation made, covers the contractual perimeter of Berkine (Blocks 404 and 208), located 300 km southeast of Hassi Messaoud (Ouargla). It was signed under the aegis of Law No. 19-13 governing hydrocarbon activities.
As part of this contract, the parties undertake to continue the development and operation of this perimeter through a work program including, in particular: a high-density 3D seismic acquisition, the drilling of 100 oil wells, as well as the conversion of 46 wells, mainly into “WAG” process wells.
The document also provides for the carrying out of the master plan and facility optimization studies, the implementation of “Oilfield digitalization” solutions, the implementation of 2 “Enhanced Oil Recovery” (EOR) pilot projects, and the completion of environmental issues relating to the reduction of the carbon footprint.
The total amount of investment planned for the implementation of this development and exploitation plan is estimated at nearly 4 billion dollars and will ultimately allow an additional recovery of more than one (1) billion barrels of oil equivalent of hydrocarbons, which will increase the average ultimate recovery rate to 55%.
This contract was announced on Monday by the Algerian President, Abdelmadjid Tebboune who mentioned the increase in the quantities of gas supplied to Italy.
“An important agreement will be signed this Tuesday with the companies ”Occidental”, ”ENI” and ”TOTAL”, for an amount of 4 billion dollars, which will make it possible to supply Italy with very large quantities of natural gas”, he said in a statement to the press following the signing of numerous bilateral cooperation agreements, with the President of the Italian Council of Ministers, Mario Draghi, who arrived this morning in Algiers as part of a visit.
Abdelmadjid Tebboune reaffirmed his country’s desire to be one of Europe’s energy suppliers.
“I would like to reaffirm to my friend the President of the Italian Council of Ministers, Mr. Draghi, what we had proposed in Italy, namely to be one of Europe’s suppliers of electrical, solar, and conventional energy”, said he declared.
