On 7 July, Algerian energy giant Sonatrach and Italy’s ENI signed a $1.35 billion, 30-year production-sharing contract to explore and develop hydrocarbons in the Zemoul El-Kbar block within the Berkine Basin. The deal targets an estimated 415 million barrels of oil equivalent (BOE), including 9.3 billion cubic metres of natural gas, and includes a 7-year exploration phase with a potential 10-year extension. The agreement aligns with Algeria’s Hydrocarbon Law No. 19-13 and follows the recent passage of the long-stalled draft mining law, taking place amid Europe’s broader strategic pivot toward Gulf relations in response to the ongoing Iran-Israel war. Algeria’s liberalisation threatens to sideline Morocco in the regional energy race, but could attract greater Chinese investment.
