Economics Affairs

Sonatrach, GE discuss partnership projects

APS - 12 March 2018

ALGIERS-CEO of Sonatrach group Abdelmoumen Ould Kaddour on Sunday met with CEO of US group General Electric (GE) John Flannery and Executive Key Account Manager of Baker Hughes General Electric (BHGE) Taoufik Ferhat, Sonatrach told APS.

During the meeting held at Sonatrach's headquarters, Ould Kaddour emphasized "the urgent need to put into operation the joint venture" Algerian Petroleum Equipments Company (APEC) created between Sonatrach and GE. In addition, he expressed his satisfaction with the partnership through Algesco joint venture (Algerian Engineering Services Company), created in partnership between Sonatrach, Sonelgaz and GE in 1993, and specialized in gas turbine engineering, repair and maintenance.

In this connection, he underlined the "good relations" between Sonatrach and its partners GE and BHGE. In addition, Ould Kaddour referred Sonatrach's 2030 strategy and vision (SH 2030) and underscored the importance of digital transformation.

Besides, GE CEO spoke out about renewable energy, shale gas, offshore exploitation, the importance of digital technology and the transformation of organizations, the challenges resulting from fluctuations in oil price as well as training in leadership. In addition, Flannery expressed his satisfaction with the combination between Baker Hughes and GE and optimistically recalled GE's high expectations from this great company. In last November, Sonatrach and BHGE signed an agreement on the creation of a joint venture specialized in the manufacturing, assembly and maintenance of various types of pressure control equipment such as wellheads, establishing thus an important basis to meet Algeria's upstream growing need.

The investment is budgeted at USD45 million in the first phase of the project which will be operational in December 2019, before reaching USD200 million in the long term, said the project's stakeholders in the signing ceremony. The capital of this joint company, called Sonatrach General Electric petroleum equipment company (Sogepec SPA), is DZD4 billion, 51% of which is detained by Sonatrach and 49% by BHGE. *Guitouni holds talks with General Electric CEO* ALGIERS-Energy Minister Mustapha Guitouni on Sunday received CEO of General Electric John Flannery, with whom he discussed the state and prospects of partnership with both parties, announced the ministry in a communiqué. During this meeting, Guitouni emphasized the crucial importance" the ministry attaches to developing mutually beneficial partnerships.

According to him, these partnerships should focus on projects that integrate the mastery of production technologies, the transfer of know-how and expertise, training, research and development as well as national integration, in accordance with the guidelines of President of the Republic Abdelaziz Bouteflika.