Sonatrach, ENI, and Equinor Collaborate on Major Energy Development and Exploration Project in In Salah and In Amenas
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BY: Dr. Hana Saada
ALGIERS- In Salah and In Amenas, two of Algeria’s largest gas fields, are the focus of ambitious new exploration and development programs aimed at bolstering production to meet growing demand. Currently producing nearly 12 billion cubic meters and 12 million tons of condensate and LPG annually, the goal is to reach the combined optimal production capacity of 18 billion cubic meters of dry gas per year in the coming years.
In this regard, Algeria’s state-owned energy company Sonatrach, along with its two foreign partners—Italian energy giant ENI, which acquired British Petroleum’s assets in the two sites in 2022, and Norwegian company Equinor—signed a memorandum of understanding on Thursday to strengthen exploration activities in both fields. According to a statement released by Sonatrach, the agreement reflects the parties’ commitment to expanding their partnership and cooperation through the implementation of a comprehensive exploration, appraisal, and development program in the In Salah and In Amenas regions, synergizing with existing infrastructure.
The agreement aims to establish a framework for cooperation between the parties with the intention of concluding hydrocarbon contracts in the identified areas of interest in In Salah and In Amenas, under the auspices of Law 19-13, which governs hydrocarbon activities.
The decision to resume exploration activities in the perimeters of the two major gas complexes in Algeria aligns with Sonatrach’s strategy of replenishing the country’s resources to meet both domestic and international demand. This move complements the development programs launched in 2022 and signals a commitment to optimizing production and ensuring long-term sustainability.
Already, progress is evident in the In Salah region, where Sonatrach is drilling two new wells, expected to be operational by the second half of this year, with a production capacity exceeding 2 million cubic meters per day, in collaboration with its two partners. With seven gas fields and a current production capacity of 9 billion cubic meters per year, In Salah is operating at nearly 60% capacity, equivalent to a volume of 5.5 billion cubic meters. As gas from In Salah is destined for export to the European market, Sonatrach and its partners have initiated a long-term program aimed at aligning production with environmental standards, including measures to reduce and capture greenhouse gas emissions.
In Amenas, the fourth-largest gas project in Algeria, with a current production of 10 million cubic meters per day and significant condensate content, is undergoing a development program to increase production to nearly 9 billion cubic meters per year in the coming years, reaching the optimal production capacity of the In Amenas gas complex. This development program involves drilling and connecting approximately one hundred wells to the gas complex and enhancing exploration activities to maintain production levels.
Sonatrach and its partners are embarking on medium and long-term projects to enhance production in these two critical gas fields to meet the needs of the European energy market, which is a focal point of European energy policy. Both ENI and Equinor are investing not only in improving production in these key gas fields but also in collaborative efforts with Sonatrach to produce “clean” gas through various decarbonization initiatives.
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