Advertisement
| 09 November, 2017

Sonatrach, Baker Hughes to form JV, build Algeria plant

The site is due to start production in December 2019.

Image used for illustrative purpose. 
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.

Image used for illustrative purpose. 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
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;))