Page 6 - AfrOil Week 09 2023

AfrOil INVESTMENT AfrOil

Eni finalises acquisition of two

main concessions in Algeria

ALGERIA THE Italian energy group Eni has closed the sharing contract (PSC) for blocks 404 and 208
acquisition of two natural gas-producing con- in the Berkine basin with Sonatrach, Occidental
cessions tied to BP’s business in Algeria after (US) and TotalEnergies (France). The Berkine
getting necessary approvals, the group said in a fields have a production capacity of 1mn cubic
press release on Tuesday, February 28. metres per day of gas as well as nearly 4,000 bar-
The two concessions, In Amenas and In rels per day (bpd) of associated liquids. Eni has
Salah, were jointly operated with Algeria’s state- said it expects production capacity to be dou-
owned oil and gas group Sonatrach and Nor- bled to 2 mcm per day.
way’s Equinor. Meanwhile, last month, the Italian gas grid
The deal was announced in early September, operator Snam acquired Eni’s 49.9% stake in
when Eni said it was seeking to acquire the fields companies operating two groups of gas pipe-
in order to secure gas for the European market lines between North Africa and Italy for €405mn
and strengthen its presence in Algeria. In 2022, ($435mn). The deal, which secured approvals
Algeria and Italy finalised a major energy deal after nearly 14 months delay, was made under
under which the former will provide an addi- Snam’s unit, SeaCorridor. Eni has retained the
tional 4bn cubic metres per year of gas to help remaining 50.1%. ™
the European country face supply challenges
aggravated by Russian delivery cuts.
With the acquisition of In Salah and In
Amenas, Eni’s equity production in Algeria
will rise to nearly 130,000 barrels of oil equiva-
lent per day (boepd) in 2023, strengthening the
group’s position in the North African country.
Eni started operations in Algeria in 1981.
The group currently has active development
programmes in the Berkine basin. The Italian
group and Sonatrach are developing construc-
tion work on a 10-MW solar project and a solar
efficiency testing lab in Algeria’s Bir Rebaa Nord
inside the oil production complex in Berkine.
The company also signed a production Eni bought the fields from BP, which built this facility in Algeria (Photo: BP)

Lukoil reportedly discussing sale of

stake in Pecan oilfield with Indian firms

GHANA LUKOIL, Russia’s largest privately owned oil This sale is expected to help facilitate the
company, is reportedly in discussions with completion of a development programme for
Indian firms on the possibility of selling its stake the field. Aker Energy, the Norwegian company
in the Pecan oilfield offshore Ghana. that owns a 50% stake in Pecan, said last year
Sources familiar with the matter informed that it would have to postpone its submission of
Reuters on February 27 that Lukoil was discuss- a field development plan (FDP) since Lukoil, a
ing the deal directly with potential buyers rather company under sanction, remained an investor
than working through advisors or intermediar- in the project.
ies, as investment banks have not been willing In early February, though, Ghana’s Deputy
to provide support due to the Western sanctions Energy Minister William Owuraku Aidoo said
imposed on Russia. at the India Energy Week conference in Banga-
They did not identify the Indian companies lore that he expected the impasse to be resolved
involved in the talk. soon.

P6 www. NEWSBASE .com Week 09 02•March•2023