Algeria oil company Sonatrach and its Chinese partner Sinopec on Thursday in Algiers signed a Memorandum of Understanding, to expand their partnership and the search for new opportunities, the national hydrocarbons company said in a press release.
Sonatrach underlines that this signature reflects “the will of both parties to consolidate their existing relations and to extend their cooperation, through the seeking of new partnership opportunities”.
The memorandum of understanding aims at strengthening the “historical partnership” on the contractual scope of Zarzaitine, located in the Illizi. It also aims at defining the framework of cooperation between the parties for the conclusion of a new hydrocarbon contract on this perimeter under the aegis of law 19-13 governing hydrocarbon activities. This agreement extends the exploitation period of Zarzaitine beyond 2023, the end of the current contract, the same source said.
The Memorandum of Understanding aims at identifying joint investment opportunities for both parties in hydrocarbon exploration and production projects, including cooperation in the field of LNG and petrochemicals, in Algeria and abroad.
Sinopec has been present in Algeria since 2003 and operates with Sonatrach the contractual scope of Zarzaitine, within the framework of an association contract aimed at increasing the recovery rate of crude oil reserves.