Eni Strikes Pay Again In Berkine Basin
Italian energy major Eni and Sonatrach have 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 (RODW-1) exploration well in the Sif Fatima II research perimeter is the third well in the exploration drilling campaign.
Eni said that it led to a discovery of oil and associated gas in the Triassic sandstones of the Tagi reservoir. During the production test, the well 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 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.
According to Eni, the RODW-1 discovery confirms the validity of Eni’s and Sonatrach’s successful near-field and infrastructure-led exploration strategy, which allows a rapid valorization of the new resources.
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.
Eni has been active in the Berkine basin recently. Just last week, Eni signed a new PSC for blocks 404 and 208 in Algeria with Sonatrach, Oxy, and TotalEnergies. The contract, signed under Algeria’s new hydrocarbon law of 2019, will allow the partners to boost investments, increasing the fields’ hydrocarbons reserves while extending their production life for further 25 years.
This means that Eni will invest $4 billion in a site located on the perimeter of Berkine to produce one billion oil equivalent barrels.
It is also worth noting that Italy and Algeria tightened their cooperation as Italian Prime Minister Mario Draghi signed 15 agreements and memorandums of understanding in areas ranging from energy to sustainable development, justice, and micro-enterprises during a visit to Algiers as part of the fourth Italy-Algeria intergovernmental summit.
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.
Eni previously signed an agreement with Sonatrach that would allow the Italian firm to increase the quantities of gas imported through the TransMed/Enrico Mattei pipeline. The agreement would allow exploiting the pipeline's available transportation capacities to ensure greater supply flexibility, gradually providing increasing volumes of gas from 2022, up to 317.8 billion cubic feet per year in 2023-24.
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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