- The award of this contract represents a further step forward in Enels international strategy of acting as a vertically integrated energy company with direct access to strategic commodities.
Rome, January 18th, 2010 Yesterday, a consortium set up by Enel (27.5%), Spanish company Repsol (52.5%) with the role of Operator and FrenchBelgian company GDF-SUEZ (20%) signed with the Algerian National Agency for the Valorisation of Hydrocarbons Resources Alnaft and Sonatrach, the Algerian National Oil Company, an exploration and exploitation contract for the South-East Illizi gas field in Southeastern Algeria.
The signing of the contract at the presence of Algerian Minister of Energy Mr Chakib Khelil follows the awarding of the license that took place on December 20th 2009. The South East Illizi field was offered in a tender by Alnaft on July 27th 2009 within the framework of the Second Bidding Call for the Awarding of Hydrocarbons Research and Exploitation Contracts.
The award of this contract marks the entry of Enel in the E&P (exploration and production) sector in Algeria, with the aim to consolidate its strategic partnership with this country. The Enel Group is already one of the main end customer of Algerian gas, accounting for 15% of total gas exports under contract from the country, and a key partner of the domestic oil company Sonatrach on the Galsi and Medgaz gas pipelines, the latter through Endesa, connecting Algeria to Italy and Spain.
The contract is a further step forward in Enels strategy of targeted consolidation as a vertically integrated energy company with direct access to strategic commodities.
In May 2009 through a joint venture with Total Enel was awarded an exploration block in the Egyptian Nile Delta within the frame of the 2008 EGAS International Bid Round. The joint venture is 90% owned by Total with the role of Operator and the remaining 10% by Enel.
In November 2009 Enel purchased the Italian gas assets of Stratic Energy Corporation, including approximately 0.7 billion cubic meters of reserves and other exploration permits.
Enel also owns a 19.6% stake in SeverEnergia, a Russian company with approximately 5 billion BOE of reserves under development in partnership with Gazprom and Eni.