AfrOil: Eni acquires BP’s upstream Algerian assets

Italy’s Eni has reached agreement with BP (UK) on the acquisition of the latter company’s upstream assets in Algeria.

In a statement, Eni said it expected the deal to help it gain access to additional natural gas reserves that could be used to supply European markets, while also expanding its own business operations in Algeria. The transaction “will allow Eni to increase its portfolio of assets in the country and, jointly with the new contracts of Berkine South and Block 404/208 recently signed, will allow new and synergic development opportunities, mainly focused on increasing gas production,” it commented.

Two of the key assets included in the acquisition are BP’s stakes in the In Amenas and In Salah gas blocks, it noted, adding that the Algerian fields could serve as a much-needed source of gas for the Continent. “This acquisition has a great strategic value to further contribute to Europe’s gas needs,” it commented.