Algiers, Algeria | – The national hydrocarbon group Sonatrach and the American company General Electric (GE) signed Thursday in Algiers a memorandum of understanding on the creation of a joint company for the manufacturing of equipment used in oil and gas industry.
This new unit, of which Sonatrach will hold 51% stake through the oil services holding (SPP) while 49% will be held by GE, will be set up in the form of a joint stock company.
This unit will manufacture and develop, among others, equipment of drilling and production, equipment for measurement and supervision as well as provision for services and trainings relating to oil fields.
Most of the joint venture’s employees will be Algerians, to be strengthened by the experts of the American company.
Attending the ceremony, Energy Minister Youcef Yousfi underlined Sonatrach group’s willingness to “acquire the necessary technology to speed up its development” in an international context marked by “an upheaval in the oil and gas industry.”
This upheaval is the result of the technological and scientific development in this industry which “hasn’t always been beneficial,” said the minister, adding that the drop in oil prices is one of this evolution’s effects.