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Oil and Gas

UPDATE 1-Algeria's Sonatrech says it has held talks with Eni on gas for Italy

(Adds detail and background)

Algiers, April 3 (Reuters) - State-owned Algerian oil and gas company Sonatrach has been in discussion with energy group Eni over how to increase gas supply to Italy in the short and medium term, a Sonatrach statement said.

Sonatrach did not disclose details on volumes. Algeria is a leading supplier of gas to Italy.

Eni Chief Executive Claudio Descalzi and Sonatrach counterpart Toufik Hakkar have also confirmed a previous decision to speed development of new oil and gas projects in the South Berkin region, the statement said.

Algeria has made three discoveries this year, with one in the Touggourt region estimated at about 1 billion barrels of crude oil, Sonatrach figures show.

Reporting by Lamine Chikhi Editing by David Goodman

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