ECONOMY

Sonatrach, China's Sinopec sign MoU

ALGERS- Sonatrach and its Chinese partner Sinopec on Thursday in Algiers signed a Memorandum of Understanding, to expand their partnership and the search for new opportunities, the national hydrocarbons company said in a press release.

This MoU concluded by the two companies is designed to "expand their existing relations and extend their cooperation, through the search for new partnership opportunities".

The Memorandum of Understanding aims to strengthen "the historic partnership" on the contractual perimeter of Zarzaitine, located in the Illizi basin.

It is also intended to define the framework for cooperation between the parties with a view to concluding a new hydrocarbon contract in this perimeter under the aegis of Law 19-13 governing hydrocarbon activities. This agreement extends the operating life of Zarzaitine beyond 2023, the expiry date of the current contract, the same source said.

The Memorandum of Understanding aims to identify joint investment opportunities for both parties in hydrocarbon exploration and production projects, integrating cooperation in the field of LNG and petrochemicals, in Algeria and abroad.

The Sinopec Company is present in Algeria since 2003 and operates with Sonatrach on the contractual perimeter of Zarzaitine, within the framework of an association contract aimed at increasing the recovery rate of crude oil reserves.