Eni Starts Production From Two Berkine South Fields In Algeria

Italian oil and gas major Eni has started production from two gas fields related to the Berkine Sud contract in Algeria just six months after the contract was awarded through accelerated development.

The production of the Berkine South, which is the first contract to be signed under the new Algerian hydrocarbon law from 2019, is operated by Eni and Sonatrach, and currently has a production capacity of 1 million standard cubic meters per day of gas and approximately 4,000 barrels per day of associated liquids.

Eni said that this capacity was expected to increase to around 2 million standard cubic meters per day of gas by the end of the year, reaching the full potential of the MLE gas treatment plant, equal to 11 million standard cubic meters per day of gas.

It is worth reminding that Eni recently signed a new PSC for blocks 404 and 208 in the Berkine basin with Sonatrach, Oxy, and TotalEnergies. The contract will allow the partners to boost investments, increasing the fields’ hydrocarbon reserves while extending their production life for further 25 years.

The agreed plan of activities will also include new technologies to improve the reserves recovery factor and reduce CO2 emissions through energy efficiency and decarbonization projects. This means that Eni will invest $4 billion in a site located on the perimeter of Berkine to produce one billion oil-equivalent barrels.

The Italian government also finalized a major energy deal with Algeria for additional 4 billion cubic meters of gas, making the North African country Italy's biggest gas supplier – a position previously held by Russia. This makes Algeria Africa's biggest gas exporter to Europe.

In late July, Eni and Sonatrach made a further discovery in the Sif Fatima II concession located in the Berkine North Basin in the Algerian desert. The Rhourde Oulad Djemaa Ouest-1 exploration well in the Sif Fatima II research perimeter is the third well in the exploration drilling campaign.

Eni said that the discovery of oil and associated gas produced 1,300 bbl/day of oil and about 2 mmscfd of associated gas. The RODW-1 discovery comes after the significant discovery made by the HDLE-1 well in Zemlet el Arbi, announced in March 2022, and the successful appraisal of well HDLS-1 in the adjacent Sif Fatima II.

The development of these discoveries will be fast-tracked, thanks to their proximity to existing Berkine North and Rhourde Oulad facilities.

The Zemlet el Arbi and Sif Fatima II concessions are operated by a joint venture between Eni which holds a 49 percent stake and Sonatrach which holds the remaining 51 percent. The discovery is part of the new exploration campaign which will include the drilling of 5 wells in the Berkine North Basin.

The Italian firm has been present in Algeria since 1981. With an equity production of 100,000 barrels of oil equivalent per day, Eni is the main international company in the country.

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