BAKU, Azerbaijan, July 24. Eni and Algeria’s national energy company Sonatrach have signed a new memorandum of understanding (MoU) aimed at deepening cooperation in hydrocarbons, renewable energy, and the broader energy transition, Trend reports.
The agreement was signed on the sidelines of the Italy-Algeria intergovernmental summit, in the presence of Algerian President Abdelmadjid Tebboune and Italian Prime Minister Giorgia Meloni. The move underlines the strategic energy partnership between the two countries, with a focus on energy security and long-term economic development.
Under the new protocol, Eni and Sonatrach commit to expanding joint efforts to develop Algeria’s energy resources. This includes new upstream contracts to increase gas production, and the extension of existing supply agreements that will help maintain stable gas exports to Italy.
The companies also pledged to step up cooperation in renewables and energy transition, with plans to jointly develop new projects in low-carbon energy and sustainable technologies.
The agreement builds on recent progress, including Eni and Sonatrach’s deals on the Zemoul El Kbar and Reggane II areas. These combined efforts are expected to add up to 5.5 bcm of gas annually by 2028, supported by more than $8 billion in investments.
Eni, which has operated in Algeria since 1981, remains the country’s leading international energy company, with equity production reaching around 137,000 barrels of oil equivalent per day in 2024.