Sonatrach and Chevron Sign MoU
Sonatrach has signed a Memorandum of Understanding (MoU) with Chevron for future co-operation on exploration, development and production following the signing of Algeria’s new Hydrocarbons Law.
The MoU will allow the two companies to work on technology transfer in various parts of the oil and gas business.
The law – which was passed in December last year – maintains Sonatrach’s equity role in contracts at 51%, enabling foreign companies to own 49%. The current legislation eliminates taxation and conditions for local material.
Meanwhile, Algeria has made progress with Italy’s Eni. The two companies signed an agreement to market dry gas from the Zemoul El Kbar license, until 2042. The gas will be transported through a gas pipeline connecting blocks 403 and 405b in the Menzel Ledjmet facilities, where it will be treated.