Advertisement
| 09 November, 2017

Sonatrach, Baker Hughes to form JV, build Algeria plant

The sun sets behind the stacks at the gas plant at the state-run Sonatrach gasfileds located 1200 km (750 miles) south-east of Algiers, on Thursday February 24.

The sun sets behind the stacks at the gas plant at the state-run Sonatrach gasfileds located 1200 km (750 miles) south-east of Algiers, on Thursday February 24.

REUTERS/Zohra Bensemra

The site is due to start production in December 2019.

ALGIERS - State energy company Sonatrach and Baker Hughes, part of GE (BHGE), will set up a joint venture and build an oil equipment plant in Algeria at a cost of $45 million under a deal signed on Thursday, Sonatrach said.

Algeria's Sonatrach will hold a 51 percent stake and BHGE the remaining 49 percent in the project which will be based in Azrew in western Algeria, it said in a statement.

The site is due to start production in December 2019.

"With Sonatrach, we are able to establish a strong manufacturing hub that will increase local capacity and boost exports," BHGE CEO Lorenzo Simonelli said in the statement.



Advertisement
(Reporting by Hamid Ould Ahmed; editing by Ulf Laessing and Jason Neely) ((hamid.ouldahmed@thomsonreuters.com;))