The Italian-headquartered energy player will strengthen its presence in the North African country by acquiring BP’s upstream business in Algeria.

Energy company Eni has entered into an agreement to purchase BP’s upstream business in Algeria.

International law firm Pinsent Masons acted for Eni on all details of the transaction which was announced on 7 September, and for which deal values were not published.

The target company includes both the gas-producing concessions of ‘In Amenas’ and ‘In Salah’ in the Southern Sahara, in which it owns a 45.89% and 33.15% working interest, respectively. Joint ventures co-owned by BP, Equinor and Sonatrach operate both concessions, which last year yielded a combined 11 billion cubic metres of gas, together with 12 million barrels of LPG and condensates.

The transaction will reinforce Eni’s position in Algeria, where it has grown to become a significant player in the local gas production market since arriving in 1981. Its Algerian assets are forecast to produce 120,000 barrels of oil equivalent daily by 2023.

Eni stated in a press release: “This acquisition has a great strategic value to further contribute to Europe’s gas needs and further strengthens Eni's presence in Algeria, a major gas producer and a key country in for Eni.”

BP’s executive vice-president of gas and low-carbon energy, Anja-Isabel Dotzenrath, said: “BP has worked successfully with Algeria and our partners over almost 30 years, developing and supporting operations on two...

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