Sonatrach-BGHE Deal Boosts Algeria’s Upstream O&G Position

Sonatrach and Baker Hughes, a GE company, have signed an agreement to create a 20,000 sqm manufacturing facility in Arzew Industrial Zone aiming to strengthen Algeria’s position in the upstream oil and gas market.

Sonatrach and BHGE have formed a new company in which Sonatrach and BHGE have 51% and 49% ownership respectively.

Through an initial combined investment of USD 45 million, the new company will provide manufacturing, assembly, and maintenance for various types of oil field equipment including wellheads, Xmas trees, BOPs and valves. The facility will also add training capabilities and offer competency development programs for more than ~200 engineers during the first 7 years.

Abdelmoumen Ould Kaddour, CEO of Sonatrach, said: “The creation of this company is a breakthrough in Sonatrach’s integration chain, with a view to better controlling costs and deadlines to ensure the transfer of know-how and technologies through the diversification of its portfolio of goods and services.

“It will contribute to strengthening the national industrial fabric and the creation of a network of national subcontractors, certified to international norms and standards. It will also consolidate the relationship between Sonatrach and BHGE, and boost it to a partnership of excellence.”

Rami Qasem, president and CEO of BHGE Middle East, North Africa, Turkey and India, said: “Through the delivery of high end oil field products and services, BHGE reaffirms its focus on driving further productivity for our customers across the entire oil and gas value chain. We are honored to work with Sonatrach and play an important role in supporting the country’s ambition to be among the key upstream manufacturers in North Africa. The new company will not only revitalize Algeria’s local supply chain, but also position the country as a key manufacturer in industrial equipment.”

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