The Algerian oil company, Sonatrach, and its Chinese partner, Sinopec, have signed a memorandum of understanding (MoU) to show the commitment of both parties to consolidate their existing relations, to extend their cooperation, and to look for new partnership opportunities.
The MoU is to strengthen the historic partnership on the contractual perimeter of Zarzaitine, located in the Illizi basin in Algeria. The purpose is to define the framework for cooperation between the parties with a view to the conclusion of a new hydrocarbon contract on this perimeter under the aegis of Law 19-13 governing hydrocarbon activities.
The newly signed agreement extends the operating life of Zarzaitine beyond the current end of the term of the contract, which is 2023. The MoU aims to identify opportunities for joint investment for the two parties in hydrocarbon exploration and production projects, integrating cooperation in the field of LNG and petrochemicals, in Algeria and the United States.
SINOPEC in Algeria
The Sinopec company has been present in Algeria since 2003 and it operates the contractual perimeter of Zarzaitine with Sonatrach, within the framework of an association contract with the object of increasing the recovery rate of crude oil reserves.