Petroleum Africa
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Tuesday, November 14, 2017
Baker Hughes (BHGE) and Sonatrach, Algeria’s state run oil and gas firm, signed an agreement that will see a 2,000-sq-meter oilfield equipment manufacturing facility set up in the Arzew Industrial Zone through the formation of a new company.
Sonatrach and BHGE will have 51% and 49% ownership respectively, in the new company.
Through an initial combined investment of $45 million, the new company will provide manufacturing, assembly, and maintenance for various types of oilfield equipment including wellheads, xmas trees, BOPs and valves, establishing a major base to fulfill Algeria’s increased domestic upstream requirements with the potential for future exports. The facility is expected to be operational at the end of 2019.
The facility will also add training capabilities and offer competency development programs for more than 200 engineers during the first seven years. In addition, it will help create local jobs in the Arzew area, a substantial number of indirect jobs serving the sector, and the development of qualified industrial SMEs.
AbdelmoumenOuldKaddour, CEO of Sonatrach, said: “The creation of this company is a breakthrough in our integration chain, with a view to better controlling costs and deadlines to ensure the transfer of know-how and technologies through the diversification of its portfolio of goods and services.”
“It will contribute to strengthening the national industrial fabric and the creation of a network of national subcontractors, certified to international norms and standards. It will also build on the relationship between Sonatrach and BHGE, and boost it to a partnership of excellence,” he said.
Rami Qasem, CEO of BHGE Middle East, North Africa, Turkey and India, said: “Through the delivery of high end oilfield products and services, our company reaffirms its focus on driving further productivity for our customers across the entire oil and gas value chain.”
“We are honored to work with Sonatrach and play an important role in supporting the country’s ambition to be among the key upstream manufacturers in North Africa. The combined effort underscores our commitment to help fuel the economy by improving economic competitiveness, developing skilled talent and delivering the highest manufacturing standards with plans for future exports,” he said.
“The new company will not only revitalize Algeria’s local supply chain, but also position the country as a key manufacturer in industrial equipment,” he added.
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