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Algiers, Algeria | June 10th, 2024 — Sonatrach, Algeria’s state-owned oil and gas company, and China’s Sinopec have committed to bolstering their bilateral cooperation in the hydrocarbons sector. This agreement emphasizes the development of exploitation technologies and the manufacturing of industrial equipment, as stated in a recent communiqué by Sonatrach.

High-Level Meetings and Strategic Agreements

The commitment was reaffirmed during a visit by Sonatrach’s CEO, Rachid Hachichi, to China from June 6 to 11. Accompanied by a delegation of senior executives from Sonatrach, Hachichi engaged in several high-level meetings aimed at strengthening the partnership with Chinese counterparts in the fields of energy, digitalization, and information technologies.

On June 7, Hachichi and his delegation met with the CEO of China National Petroleum Corporation (CNPC) and other senior officials. The meeting included a tour of CNPC’s state-of-the-art data center, highlighting the advanced technological infrastructure that supports their operations.

A key outcome of this visit was the signing of a memorandum of understanding (MoU) with Sinopec. This MoU focuses on the entire hydrocarbons value chain, underscoring both parties’ commitment to enhanced collaboration. Additionally, the delegation visited China Petroleum Pipeline (CPP) to explore further cooperation opportunities.

Visit to Fuling Gas Field

A significant highlight of the visit was a tour of the Fuling gas field in Chongqing, which is operated by Sinopec. The Fuling gas field is the largest in China, boasting an impressive annual production capacity of up to 10 billion cubic meters. This visit provided Sonatrach’s delegation with an in-depth understanding of the advanced technologies and techniques utilized in the exploitation of this major gas reserve.

During the tour, a dedicated session was held to present Sinopec’s extensive experience in the global oil and gas industry. With operations in over 24 countries, Sinopec is recognized as a leader in the sector, particularly for its pioneering efforts in the development of oil and gas resources worldwide.

Exchange of Expertise and Future Collaborations

The visit allowed for a robust exchange of expertise between Sonatrach and Sinopec, particularly concerning the technological advancements and operational methodologies employed at the Fuling gas field. This exchange is expected to enhance Sonatrach’s capabilities in similar projects.

Sonatrach expressed its eagerness to leverage Sinopec’s technological prowess and experience in hydrocarbons exploitation. Both companies agreed to explore further partnership opportunities within Algeria, across Africa, and globally. They also discussed the potential for manufacturing industrial equipment for the hydrocarbons sector in Algeria, which could significantly boost the local industry.

Strategic Importance of the Partnership

This renewed partnership is strategically significant for both Sonatrach and Sinopec. For Sonatrach, it represents an opportunity to enhance its technological and operational efficiencies, potentially leading to increased production and profitability. For Sinopec, it provides a gateway to expand its footprint in Africa and strengthen its position in the global energy market.

The collaboration aligns with Sonatrach’s broader strategic objectives of technological advancement and capacity building. By integrating Sinopec’s expertise, Sonatrach aims to drive innovation and improve its operational standards, ensuring sustainable growth and competitiveness in the global market.

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