Eni Expands Position in Algeria’s Touat Gas Field Following Engie Withdrawal
Eni has increased its stake in Algeria’s onshore Touat natural gas project after Engie formally exited the development, according to a presidential decree issued by Algerian authorities.
The decree approves amendments to the hydrocarbon contract covering the Touat perimeter, which comprises blocks 352A and 353 in the Adrar region of southwestern Algeria.
Under the revised ownership structure, Eni acquires 8% of Engie’s former interest, raising its indirect participation in the project to 42.9%.
PTT Exploration and Production (PTTEP) assumes the remaining 22%, increasing its stake to 34%, while Sonatrach retains its 35% share. Sonatrach will continue to offtake 100% of the gas produced from the field.
Production History and Recovery
The Touat gas field commenced production in 2019 but experienced a prolonged shutdown beginning in late 2021 due to mercury contamination that affected processing facilities.
Operators undertook remediation measures and technical upgrades, enabling output to recover to approximately 13 million cubic metres per day equivalent to around 4.5 billion cubic metres annually.
Touat forms part of Algeria’s southwestern gas infrastructure network and contributes to both domestic supply and export flows to Europe.
Strategic Realignment in Algeria’s Energy Sector
The ownership restructuring reflects broader shifts in Algeria’s upstream sector, where Italian and Asian operators are strengthening their presence as certain French firms scale back exposure.
Algeria remains a strategically important market for Eni in Africa. In 2024, the country ranked second on the continent in terms of payments received from Eni to host governments, totaling approximately US$1.2 billion.
Eni and PTTEP are also advancing exploration activities in the nearby Reggane 2 block, awarded during Algeria’s 2024 licensing round, underscoring continued upstream investment momentum in the Adrar basin.
The revised Touat shareholding structure consolidates Eni’s footprint in Algeria’s gas sector while reinforcing the role of Asian partners in the country’s long-term energy development strategy.
