SONATRACH and BHGE Form New Company
SONATRACH and BHGE have formed a new company in which SONATRACH and BHGE have 51% and 49% ownership respectively, underscoring a major commitment to deliver best-in-class manufacturing capabilities in Algeria to the highest international standards. The project draws on the extensive experience of BHGE in Oilfield equipment manufacturing and leverages the company’s global and local scale to provide production solutions from the facility, which is anticipated to be operational in December 2019.
Through an initial combined investment of USD 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 will also add training capabilities and offer competency development programs for more than ~200 engineers during the first 7 years.
In addition to reducing dependence on imports, the facility will boost economic competitiveness and strengthen the local supply chain by helping to create 200 local jobs in Oran’s Arzew area, a substantial number of indirect jobs serving the sector, and the development of qualified industrial SMEs.
Mr. Abdelmoumen Ould Kaddour, CEO of Sonatrach, said:
“The creation of this company is a breakthrough in Sonatrach’s 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.”
Source / More: BHGE
Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook