Eni has signed a new Memorandum of Intent with state-owned Algerian oil company SONATRACH. The agreement aims to promote decarbonisation in the oil and gas sector and reduce emissions in Algeria, while adopting international best practices.

The agreement also extends mutual cooperation formalised in January 2023 with the signing of a three-year Memorandum of Intent dedicated to reducing gas flaring, valorising recovered gas, and mitigating emissions associated with upstream activities in Algeria.

The new Memorandum of Intent builds on the previous one by further broadening the scope of cooperation and introducing new areas of collaboration. In particular, the parties will cooperate in the field of natural CO₂ removal initiatives through forestry projects and will strengthen activities for the monitoring, quantification, and reduction of methane emissions by adopting international oil and gas standards.

In the context of the previous agreement, Eni and SONATRACH had developed a structured program of joint activities, including technical analyses, capacity building initiatives, and field visits, with the objective of identifying opportunities to reduce greenhouse gas and methane emissions while training technicians to perform measurements on site. These activities facilitated the identification of initiatives including the reduction of fugitive and venting emissions, energy efficiency, the development of renewable energy projects, the reduction of flaring, and the assessment of opportunities for carbon capture, utilisation and storage.

As an example, a Leak Detection and Repair (LDAR) campaign was jointly carried out on 800 km of pipelines, with around 7,500 monitored points and relevant reduction of fugitive emissions. LDAR measurement campaigns are now conducted autonomously on a routine basis in all joint ventures jointly operated by Eni and Sonatrach.

An evaluation of baseline emissions was also carried out in 6 upstream assets operated by Eni and Sonatrach in the country.

Eni has been present in Algeria since 1981 with net production of approximately 132,000 barrels of oil equivalent per day in 2025.