Algerian National Oil Company Sonatrach has extended a production sharing contract (PSC) with majors TotalEnergies and Eni, and U.S. petroleum company Occidental Petroleum for blocks 404a and 208 with an additional 25 years in Algeria’s Berkine Basin.
The extension of the PSC will enable the 4 parties to develop additional liquids hydrocarbon resources while reducing the carbon intensity of the blocks through the deployment of a carbon reduction dedicated program.
“This new contract on Berkine asset, under the Algerian new Hydrocarbon Law, marks a new milestone in the strategic partnership with Sonatrach. This project is in line with the Company’s strategy to develop low-cost oil while contributing to carbon reduction programs to minimize our carbon footprint,” says TotalEnergies Senior Vice President Middle East and North Africa, Exploration & Production Laurent Vivier.
The partners will co-explore opportunities to develop natural gas resources in the blocks to expand Algeria’s exports to European countries.