Eni makes new oil, gas discovery in Algeria's Berkine North basin

Eni has made a new oil and gas discovery in Algeria's gas-rich, onshore Berkine basin, where the Italian energy major is a long-standing producer and recently made another large find.

The Rhourde Oulad Djemaa Ouest-1 exploration well in the Sif Fatima II concessions produced 1,300 b/d of oil and about 2 million cf/day of associated gas in tests, Eni said.

The new find comes four months after Eni announced a significant oil and gas find in Zemlet el Arbi concession in the Berkine North Basin.

"The latest discovery confirms the validity of Eni's and Sonantrach's successful near-field and infrastructure-led exploration strategy, that allows a rapid valorization of the new resources," Eni said.

The Zemlet el Arbi and Sif Fatima II concessions are operated by a joint venture between Eni (49%), and Sonatrach (51%). The latest discovery is part of the new exploration campaign which will include the drilling of 5 wells in the Berkine North Basin.

Eni is already a major player in the Berkine basin in southeast Algeria and operates the Berkine Nord gas project, comprising the Ourhoud-2, Sif Fatima-2 and Zemlet El Arbi fields.

In December, Eni and Sonatrach signed a memorandum of understanding designed to allow the companies to draw up a road map for new hydrocarbon contracts in the basin against the background of Algeria's new hydrocarbon law. The hydrocarbons law -- first announced in late 2019 but as yet unimplemented -- offers much improved fiscal terms for investors.