In Algeria, the Italian company Eni announces the start-up of the HDLE/HDLS oil field in the Zemlet el Arbi concession.
Start of production
In Algeria, Eni is starting production from the HDLE/HDLS oil field located in the northern Berkine basin. The Italian company says that the start of production comes only six months after its discovery in March. In addition, HDLE/HDLS currently produces 10,000 barrels of oil per day.
The increase in production will be achieved through a plan to drill new wells in 2023. This achievement is possible thanks to the partnership with Sonatrach and the cooperation of local authorities. It is also possible thanks to Eni’s distinctive upstream business model, based on the parallelization of project activities.
The rapid development of HDLE/HDLS will contribute to exceeding 120,000 barrels of oil equivalent per day of production in 2023. Moreover, this production reinforces Eni’s role as the main international energy company operating in the country. In addition, in recent months, the Italian company multiplied partnerships with Algeria.
An increased partnership
In July 2022, Eni made a new oil and gas discovery in the Berkine onshore basin in Algeria. This new discovery comes on a site operated by Eni in partnership with Sonatrach. In addition, four months earlier, the company discovered oil and gas in the concession of Zemlet El Arbi.
Also in July, Eni signed a contract with Sonatrach Oxy and TotalEnergies. The objective of the contract is to encourage increased investment in Algeria. This contract is part of the new Algerian hydrocarbon law of 2019.
In September 2022, BP announced the sale of its upstream activities in Algeria to Eni. The company specified that this decision includes its interests in the gas producing concessions of In Amenas and In Salah. Indeed, BP held direct interests of 33.15% of the In Salah project and 45.89% of the In Amenas project.
A political impulse
The strengthening of Eni’s presence in Algeria confirms the willingness of Mario Draghi, former Prime Minister of Italy to cooperate. Indeed, Rome, then strives to reduce its dependence on Russia. This decision was made following the beginning of the Russian-Ukrainian conflict and the multiple European sanctions.
Italy was accelerating its efforts to reduce its dependence on Russian gas. For this, Algeria appeared to be the preferred option for new gas supplies. To support this partnership between Algeria and Italy, the former Italian Prime Minister visited Algeria.
Indeed, last April, Mario Draghi, accompanied by senior officials from the energy sector and other government officials, went to Algiers. This visit contributes to strengthening the strategic relationship between the two countries, when Europe is going through a major energy crisis. The two partners were evaluating the possibilities of accelerated development on specific fields already discovered by Sonatrach.
