The PSC will result in the additional recovery of more than one billion barrels of oil equivalent of hydrocarbons from the two blocks. Credit: SONATRACH.

Algeria’s state oil company Sonatrach and its partners have jointly signed a production sharing contract (PSC) to invest $4bn in onshore blocks 404 and 208, located in the prolific Berkine basin in Eastern Algeria.

The partners include Occidental, France’s TotalEnergies, and Italy’s Eni.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The 25-year PSC is expected to result in the additional recovery of more than one billion barrels of oil equivalent of hydrocarbons from the two blocks.

Under the PSC agreement, which has been signed under Algeria’s new hydrocarbon law of 2019, the partners will carry out high density 3D seismic acquisitions, the drilling of 100 oil wells, and the conversion of 46 wells into WAG process wells.

The scope of work also includes the realisation of studies of master plans and installation optimisation, the implementation of digitalisation solutions for oilfields, implementing two enhanced oil recovery pilot projects, and undertaking environmental projects to help reduce the CO₂ footprint.

The partners will also assess the opportunity to develop and valorise associated gas resources to increase export potential for Europe, Eni said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The contract forms part of the memorandum of understanding signed between Sonatrach and its partners in 2021.

TotalEnergies Middle East and North Africa exploration and production senior vice-president Laurent Vivier said: “This new contract on [the] Berkine asset, under the Algerian new Hydrocarbon Law, marks a new milestone in the strategic partnership with Sonatrach.

“This project is in line with the company’s strategy to develop low-cost oil while contributing to carbon reduction programs to minimise our carbon footprint.”

Earlier this year, Sonatrach revealed its $40bn five-year investment plan.