Italian energy major Eni and Algeria’s state oil company Sonatrach have signed a new Memorandum of Intent (MoI) to expand their decarbonisation partnership, adding forestry-based carbon removal and routine methane monitoring to an existing programme targeting emissions across their jointly operated Algerian upstream assets.
The new agreement builds on a three-year MoI signed in January 2023, which focused on reducing gas flaring, monetising recovered gas, and cutting emissions from upstream operations. The expanded framework broadens that scope to include natural carbon dioxide removal through forestry projects, and commits both companies to strengthening methane monitoring and quantification in line with international oil and gas standards.
Work under the 2023 agreement has already produced concrete results. A Leak Detection and Repair (LDAR) campaign — a systematic process for identifying and fixing unintended gas releases from equipment and pipelines — covered 800 kilometres of pipelines and approximately 7,500 monitoring points, delivering a measurable reduction in fugitive emissions. Eni and Sonatrach’s joint ventures now conduct LDAR campaigns routinely and independently.
The two companies also established baseline emissions data across six upstream assets they operate jointly in Algeria, providing a foundation for tracking future reductions. Additional initiatives identified under the programme include improving energy efficiency, developing renewable energy projects, reducing gas flaring, and assessing carbon capture, utilisation, and storage (CCUS) opportunities.
Capacity-building has run alongside the technical work. A joint programme of field visits and training has equipped technicians to conduct on-site emissions measurements — a capability that will underpin the expanded monitoring commitments in the new agreement.
Eni has operated in Algeria since 1981 and recorded net production of approximately 132,000 barrels of oil equivalent per day (boe/d) in 2025, making Algeria a significant upstream market for the company. Eni said it will continue working with Sonatrach to reduce greenhouse gas emissions across its Algerian operations.
The partnership is closely watched by international energy investors tracking decarbonisation progress in African upstream sectors, where flaring and methane leakage have historically been significant emissions sources. North Africa’s large gas export infrastructure — much of it supplying European markets — has drawn increasing scrutiny from regulators and investors demanding measurable emissions reductions as a condition of continued engagement.
For Sonatrach, deepening technical co-operation with a major European operator on emissions standards also positions Algeria’s hydrocarbons sector to meet tightening environmental requirements tied to European Union gas import regulations, which are placing greater emphasis on the carbon intensity of supply chains.
