The Algerian state-owned oil and gas company Sonatrach and the Italian energy group Eni have signed a 30-year hydrocarbon exploration and development contract for the Zemoul El Kbarunder area, in Algeria. The contract covers an area of approximately 4,200 km², located around 300 km south-east of Hassi Messaoud. It also includes adjacent assets that were previously managed under separate agreements. Total investments in exploration and development are estimated at US$1.35bn.
The expected production from the development of the Zemoul El Kbar area is estimated at 415 mboe, including 9.3 bcm of natural gas over the duration of the contract. This agreement forms part of the recent award to Eni (partnered with PTTEP) of the Reggane II block, granted under the Algeria 2024 licensing round and officially awarded in June 2025.
Algeria has large proved crude oil and natural gas reserves (1.7 Gt of oil and 4,500 bcm of gas, respectively, end of 2023). Oil production decreased by 3% in 2023 to 61 Mt, after a 7% progression in 2022.