Algiers, 25th February 2025
SONATRACH and its Chinese partner SINOPEC International Energy Investment (HK) Holding, signed, today, a new production sharing hydrocarbon contract on the perimeter of Hassi Berkane North (HBAN) under the aegis of Law 19-13 governing hydrocarbon activities.
The signing ceremony which took place at SONATRACH Headquarters was supervised by the Chairman & Chief Executive Officer, Mr. Rachid HACHICHI, in the presence of the state minister, the Minister of Energy, Mines and Renewable Energies Mr. Mohamed ARKAB and HE the Ambassador of China to Algeria Mr. Dong GUANGLI AND Mr. Niu Shuanwen, Senior Vice- President & Board Member of SINOPEC Group.
The signing of the new contract rounds off the negotiations carried out within the framework of a Head of agreement signed between the two companies on 3rd March 2024.
Through this contract, SONATRACH and SINOPEC undertake to carry out a program of minimum work of research and assessment for the development of hydrocarbons on the perimeter of Hassi Berkane North situated between the Wilayas of Ouargla et El Meniaa and at 80km distance from Hassi Messaoud.
The projected overall investment amount for the implementation of this exploration and production program is estimated at 850 million US Dollars.
The company SINOPEC has been present in Algeria since 2002 and operates with SONATRACH
on the Zarzaitine deposit, with the aim to increase the recovery rate of the crude oil reserves.
This contract expresses the willingness of both companies to consolidate their existing relationship and expand their cooperation through new partnership opportunities in the field of hydrocarbon exploration and development.
End of Press Release