$1.2 billion from Italy’s Eni to Algeria in 2024

A formal report by energy giant Eni revealed that the Italian company paid $1.22 billion (1.069 billion euros) to Algeria in 2024, as part of the company’s payments to governments managing projects on their territories, while Libya ranked first in Africa with $2.1 billion.

The “Payments to Governments” report for 2024 by Italy’s Eni, which “Echorouk” reviewed, stated that these amounts were paid as part of Eni group’s hydrocarbon extraction activities in 2024, and were prepared in accordance with the reporting obligations stipulated in Legislative Decree No. 139 issued on August 18, 2015, within the framework of transparency, and applicable to companies listed on regulated markets in the European Union operating in the extractive industry sector.

The report shows Algeria’s prominent position as the second largest beneficiary of the company’s payments in Africa, receiving $1.2 billion, out of a total of $5.7 billion paid to African governments, representing 61% of Eni’s global payments of $9.1 billion.

This figure reflects Algeria’s strategic role in the company’s economic model, supported by a strong partnership with Sonatrach in production sharing contracts, which are characterized by low operating costs and high recovery rates, relying on mature fields and developed infrastructure, ensuring high profitability despite high taxes.

Libya topped the list with $2.1 billion, followed by Algeria with $1.22 billion, then Egypt with $826 million, while Nigeria received $566 million, Congo $413 million, Ghana $345 million, Côte d’Ivoire $175 million, and Tunisia $154 million. Payments include profit taxes, operating costs, signing and production bonuses, in addition to in-kind payments converted to monetary values.

The report indicates 15 projects in Algeria for which Eni paid more than $1.22 billion to Algeria in 2024, namely Blocks 401a, 402a, 403a, and 403d, Berkine North HDLS, Berkine North ZOI Development, Berkine North HDLE, Block 404/208, In Amenas, Berkine North OZOI Development, In Salah, Berkine South 1, Block 403, ROM North, Block 405b, Berkine North (ZAS), Berkine North (RET), and Berkine North (BKNEP).