Eni to acquire bp’s upstream business in Algeria

Eni SpA agreed to acquire bp’s upstream business in Algeria, including the gas-producing In Amenas and In Salah concessions, which produced a combined 11 billion cu m gas and 12 million bbl condensate and LPG in 2021.

bp holds working interests of 33.15% and 45.89% in the In Salah dry gas and In Amenas projects, respectively. Both are operated by joint ventures (JV) co-owned by bp, Equinor, and Sonatrach.

The In Salah gas JV has developed seven gas fields in the southern Sahara (Teg, Reg, Krechba, Gour Mahmoud, In Salah, Garet el Befinat, and Hassi Moumene), about 1,200 km south of Algiers. Production began in 2004. A second phase began in 2016. Production capacity is 9 billion cu m/year (bcmy), according to partner Equinor's website. Part of the gas is marketed in Europe on the basis of a long-term sales and purchase agreement. 

The In Amenas JV produces gas and natural gas liquids from Illizi basin in southeastern Algeria. Production began in 2006. Production capacity is 9 bcmy, according to Equinor's website.  

These acquisitions follow on the heels of recently signed contracts by Eni for Blocks 404 and 208 in Berkine basin, further increasing Eni’s assets in the country (OGJ Online, July 20, 2022).

Upon closing, subject to government approvals, partner pre-emption processes, and competition clearances processes, Eni will hold 45.89% interest in In Amenas and 33.15% interest in In Salah.