On 29 October 2018, Eni announced that it signed a farm-in agreement with Sonatrach to farm into three exploration blocks in the Berkine Basin, south-eastern Algeria. The contracts are understood to have been approved by government on 27 December 2018. The blocks are: Sif Fatima II, Zemlet El Arbi and Ourhoud II. Interests will be split as follows: Eni 49% and Sonatrach 51%. The blocks are located in the northern part of the Berkine Basin where Eni operates already oil and gas production from several fields in the Sif Fatima area and the Menzel Ledjmet area.   The exploration program will include the acquisition of 2,600 sq km of 3D seismic and the drilling of five exploration wells for a total cost of USD 80 million. The development program of already identified resources will include the drilling of 18 development wells, the construction of a 188 km 8-inch condensate pipeline, an oil gathering network tied to the Bir Rebaa Nord facilities and a gas gathering network tied to the Bir Rebaa Nord - Menzel Ledjmet Est gas line for a total cost estimated at USD 1.1 billion.    The company recently launched two infrastructure projects to support its development activities: a photovoltaic power plant and a gas pipeline.  Under an agreement signed in July 2018, Sonatrach and Eni will aim to create a gas hub in the basin based on the Bir Rebaa Nord and the Menzel Ledjmet Est fields. The idea is to use gas made available from Bir Rebaa Nord (and probably other fields nearby in the future) for export through the Menzel Ledjmet Est gas plant which becomes the center of the hub. Part of the project is the construction of a 180 km gas line which will connect Bir Rebaa Nord and Menzel Ledjmet Est.  In March 2017 representatives of Sonatrach and Eni kicked off the construction of the Bir Rebaa photovoltaic (PV) plant at the Bir Rebaa Nord oil field. The plant will cover 20 ha and have a capacity of 10 MW. The electricity generated by the plant will power the oil fieldâs production facilities. This will make available the gas previously used in power generation for a better valorization.   Eniâs announced farm in into the three exploration blocks fits the companyâs strategy to develop resources in the Berkine Basin which becomes an important production center. The company estimates that the three exploration blocks, covering together 8,500 sq km, hold reserves of 145 MMb of oil equivalent which should be confirmed through an important exploration program. First production is expected to start by the end of 2020.  Eni is currently participating in 32 production permits in the Berkine Basin with a production of 90,000 boe/d net to the company.
On 29 October 2018, Eni announced that it signed a farm-in agreement with Sonatrach to farm into three exploration blocks in the Berkine Basin, south-eastern Algeria.