Eni and Sonatrach have launched production from two gas fields related to the Berkine Sud contract in the Berkine region, eastern Algeria. The two fields, which should produce 1 mcm/day (4 bcm/year) once they reach their full potential, currently have a production capacity of 1 mcm/day (0.37 bcm/year) and 4,000 bp/d of associated liquids. This capacity is expected to rise to 2 mcm/day (0.73 bcm/year) by the end of 2022.
In July 2022, the Italian government signed a series of agreements with Algeria, including the increase of gas supplies by 4 bcm for the months ahead. In addition, Eni signed with Sonatrach an extension of their production sharing contract for a period of 25 years for onshore Blocks 404a and 208 in the Berkine basin. The contract, signed under Algeria’s new hydrocarbon law of 2019, will allow the partners to boost investments by US$4bn, increasing the fields’ hydrocarbons reserves by 1 Gboe, while extending their production life for further 25 years. In September 2022, Algeria agreed to deliver 25 bcm of gas to Italy for 2022.