The acquisition includes BP’s 45.89% stake in the In Amenas concession, and a 33.15% interest in the ‘In Salah’ concession, both located in the Southern Sahara, and operated by BP through joint ventures with Equinor and Sonatrach
The acquisition includes two gas-producing concessions. (Credit: BP)
Italian oil and gas company Eni has signed an agreement to acquire BP’s upstream business in Algeria, including its gas-producing concessions, for an undisclosed sum.
The acquisition includes BP’s 45.89% stake in the In Amenas concession, and a 33.15% interest in the In Salah concession, both located in the Southern Sahara.
The In Amenas concession started production in 2004 with a second phase starting up in 2016, and the In Salah concession started production in 2006.
BP operates both the concessions through joint ventures with Equinor and Sonatrach.
The In Salah Gas joint venture developed seven gas fields in the Southern Sahara, 1,200kms south of Algiers.
The In Amenas joint venture produces gas and natural gas liquids from the Illizi basin in south-eastern Algeria
Last year, the two concessions produced around 11 billion m3 of gas, 12 million barrels of condensates and LPG.
BP gas and low carbon energy, executive vice president Anja-Isabel Dotzenrath said: “bp has worked successfully with Algeria and our partners for over almost 30 years, developing and supporting operations on two major gas projects for the country.”
Eni said that the acquisition will strengthen its presence in Algeria, which a major gas producer and further contribute to Europe’s gas needs.
It will help increase its portfolio of assets in the country and, together with the recently signed new contracts, will enhance synergic development opportunities, said the company.
The transaction is subject to the approvals of the relevant government authorities, partner pre-emption processes, and competition clearances processes.
BP Egypt, Algeria and Libya senior vice president Karim Alaa said: “We are very proud of what bp has achieved in Algeria over many years and have appreciated the support of the government over this time.
“With its significant existing presence in Algeria and wider region, we believe Eni will be well positioned to work with partners and the government as they continue to take these assets forward.”
Last month, Eni has acquired Export LNG, which owns the Tango FLNG floating liquefaction facility in the Republic of Congo, from Exmar group.