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ALGIERS, Dec 22 (Reuters) - Algerian state energy company Sonatrach said on Thursday it had signed a deal with French Total to set up a major petrochemical facility in Algeria.
Sonatrach has commissioned Total to do a feasibility study, it said in a statement. It gave no details on the scale of the investment or its production capacity, but said it will be of a "world-class standard".
OPEC member Algeria has been looking to increase foreign investment in its energy sector after several years of stagnant oil and gas production, especially as the government wants to offset the impact of a sharp fall in global oil prices.
Earlier this year, Total filed a request for arbitration against Algeria for changing profit-sharing terms on oil and gas contracts in the mid-2000s. Algeria has said it was preparing to counter the claim, but expected little impact on business.
(Reporting by Lamine Chikhi; Editing by Alexandra Hudson) ((pat.markey@thomsonreuters.com; +213-661-692993; Reuters Messaging: pat.markey.thomsonreuters.com@reuters.net))
Sonatrach has commissioned Total to do a feasibility study, it said in a statement. It gave no details on the scale of the investment or its production capacity, but said it will be of a "world-class standard".
OPEC member Algeria has been looking to increase foreign investment in its energy sector after several years of stagnant oil and gas production, especially as the government wants to offset the impact of a sharp fall in global oil prices.
Earlier this year, Total filed a request for arbitration against Algeria for changing profit-sharing terms on oil and gas contracts in the mid-2000s. Algeria has said it was preparing to counter the claim, but expected little impact on business.
(Reporting by Lamine Chikhi; Editing by Alexandra Hudson) ((pat.markey@thomsonreuters.com; +213-661-692993; Reuters Messaging: pat.markey.thomsonreuters.com@reuters.net))
