Sonatrach and Eni signed a hydrocarbons production sharing contract to explore and develop Zemoul El Kbar in the Berkine basin 300 km east of Hassi Messaoud, Algeria.
The scope of work includes integrating digital solutions for operations and new technologies for production optimization and reserves recovery, the companies said. Zemoul El Kbar production is expected to reach 9.3 billion cu m by the end of the contractual period.
The contract duration is 30 years with a possible 10 year extension period and includes a 7-year research period. Overall investments planned for exploration and development amount to $1.35 billion with $110 million allocated for research.
In addition to the hydrocarbons contract for the Zemoul El Kbar perimeter, Sonatrach and Eni also signed a gas agreement to market dry gas from the Zemoul El Kbar Exploitation Perimeter.
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).
