Algeria’s state controlled energy company Sonatrach has signed a cooperation agreement with Italian company Eni, for the development of unconventional oil and gas in Algeria, with particular focus on shale gas, Sonatrach has confirmed in a statement.
The accord is the first of its kind signed so far in Algeria as it seeks to revive lukewarm foreign interest for the development of its hydrocarbons.
In a statement, Eni said the deal will have particular focus on shale gas as the Italian company says there are “significant” reserves of such gas in Algeria.
“Eni and Sonatrach will jointly implement activities to assess the technical and commercial feasibility of exploration and operational initiatives in shale gas,” Eni said.
“Based on previous assessments, Eni confirms the significant shale gas reserves in Algeria which Eni and Sonatrach wish to explore and develop. This will enable both companies to make important discoveries which will enhance the gas potential of the country,” Eni concluded.
