Italian energy major Eni has expanded its footprint in Algeria’s onshore Touat natural gas project following the formal exit of French utility Engie, acquiring an additional 8% stake to raise its indirect participation to 42.9%.
A presidential decree issued by Algerian authorities approved amendments to the hydrocarbon contract covering the Touat perimeter, which comprises blocks 352A and 353 in the Adrar region of southwestern Algeria. Under the revised structure, PTT Exploration and Production (PTTEP) absorbs the remaining portion of Engie’s stake, increasing its holding to 34%, while state oil company Sonatrach retains its 35% share and continues to offtake 100% of the gas produced from the field.
The Touat field commenced production in 2019 but suffered a prolonged shutdown from late 2021 following mercury contamination of its processing facilities. Following remediation and technical upgrades, output recovered to approximately 13 million cubic metres per day — equivalent to around 4.5 billion cubic metres annually — contributing to both domestic supply and export flows to Europe.
The ownership shift reflects broader realignment in Algeria’s upstream sector, where Italian and Asian operators are consolidating positions as certain French firms reduce their exposure. Algeria is a strategically significant market for Eni: in 2024, the country ranked second in Africa in payments made to host governments, totalling approximately $1.2 billion. Eni and PTTEP are also advancing exploration activities in the nearby Reggane 2 block, awarded during Algeria’s 2024 licensing round, underlining continued investment momentum in the Adrar basin.
Source: angolanminingoilandgas.com