Economics Affairs

Sonatrach, Baker Hughes General Electric sign contract on creation of joint venture

ALGIERS – Group Sonatrach and US firm Baker Hugues General Electric (BHGE) signed Thursday in Algiers a contract on the creation of a joint venture specializing in the manufacturing of oil equipments and the provision of the relating services.

The investment is amounted to $ 45 million in the first stage, before reaching $200 million at the end of the project, said the parties of the project.

The future joint venture which will mainly manufacture the well heads, imported so far by Sonatrach, will be headquartered in the industrial zone of Arzew (Oran).

In the first stage of the project, 90% of staff will be constituted by Algerian workers while the integration rate of the manufacturing of the equipments will reach 30%.