Algeria’s government-owned hydrocarbon exploration company, Sonatrach has formed a new company with America’s BHGE in order to strengthen Algeria’s position in the upstream oil and gas market. The new company has announced plans to create a 20,000 sqm manufacturing facility in the Arzew Industrial Zone.
This collaborative project will draw on BHGE’s oilfield equipment manufacturing experience and according to the company the production is due to begin in December 2019. Through an initial combined investment of USD $45 million, the new company is expected to provide manufacturing, assembly and maintenance for various types of oilfield equipment including wellheads, Christmas trees, blowout preventers (BOPs) and valves. The aim is to establish a major base to fulfil Algeria’s increased domestic upstream requirements with the potential for future exports. The facility is also expected to add training capabilities and offer competency development programs for more than 200 engineers during the first seven years.
Photo courtesy of Powershift2012/Flickr