Italian energy firm Eni has signed a renegotiated gas deal with Algerian Sonatrach for the year 2016/2017.
According to Eni, which buys natural gas from Algeria, the deal has been made for commercial terms in accordance with the relevant gas market. The company did not go into details on the terms of the agreement.
The deal follows a Framework Agreement signed by Eni and Sonatrach on 25 November 2016 to boost the upstream sector and on gas supply contracts, as well as extending the partnership to new segments of the energy sector.
Eni’s CEO Claudio Descalzi said: “I am particularly pleased with the closing of the renegotiation on gas supply contract and the level of the strategic partnership with Sonatrach, which also involves the exploration and production sector and the recent new agreement on renewables.”
According to Eni, which has worked in Algeria since 1981, the agreement revealed on Tuesday covers almost 20 percent of the gas imported into Italy.
Eni’s equity production in Algeria is more than 100,000 barrels of oil equivalent per day.