Eni Is The First Investor Under The New Algerian Hydrocarbons Law

The National Oil Company, Sonatrach, announced that the Italian Energy Giant, ENI, launched the exploration and development stage in the Berkine Basin as the first investor in the framework of the new hydrocarbons law, in addition to an agreement for the production of biofuels, hydrogen and renewable energies, and another to train staff of the Algerian Petroleum Institute.

Sonatrach announced in a statement, which copy was received by Echorouk, that during the meeting that they gathered the Chief Executive Officer of Eni, Claudio Descalzi, and the President General Manager of the Algerian state company SONATRACH, Toufik Hakkar, Thursday in Milan, Italy, to address several issues related to the progress of joint projects and ways and means to strengthen the historic partnership between the two companies.

” The Italian and Algerian officials met at the Eni headquarters in San Donato Milanese to take stock of common activities and sign various agreements in the exploration and production, research and development, decarbonisation and training fields. These agreements mark a further step forward in strengthening the partnership between the two companies”.

According to the same statement, the first agreement relates to the conclusion of a new contract in the field of hydrocarbons, within the framework of the new hydrocarbons law 19-13, indicating that the contract aims to implement an ambitious program to revive exploration and development activities in the southern Berkine Basin, and developing an area to collect gas and crude oil through the exploitation of the industrial facilities located in the patch B 405.

It is clear from Sonatrach’s statement that the Italian company Eni will be the first company to undertake investments in research, exploration and development within the framework of the new hydrocarbons law 19-13, which has officially entered into force, and this is within a bilateral agreement given that the law allows this type of contract, pending the launch of the major international tender for hydrocarbons which has been postponed since 2014.

The new law included incentives for foreign companies concerning the upstream activity (research, exploration and production), as investing companies were exempted from paying taxes and fees similar to the value-added fee (TVA), the fee on professional activity (TAP), and bank localization fees related to importing equipment for this activity, in addition to an exemption from payment of customs rights related to goods and services directly related to search, exploration and research operations.

As for the second agreement signed between the two companies, according to Sonatrach’s statement, it is a memorandum of understanding related to the production of biofuels and hydrogen, and renewable energies, explaining that this agreement comes to strengthen cooperation by giving it a multidisciplinary dimension in the field of research and development, to intensify efforts to reduce carbon emissions., which allows full commitment to the energy transition.

The third agreement signed between Sonatrach and Eni relates to defining methods and modalities for cooperation in the field of training and exchange of experiences, through cooperation between Eni Corporate University and the Algerian Petroleum Institute, to implement training programs in the fields of oil exploration and new technologies related to the energy transition.