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Sonatrach, Baker Hughes to form JV, build Algeria plant
November 9, 2017 / 2:16 PM / in a month

Sonatrach, Baker Hughes to form JV, build Algeria plant

ALGIERS (Reuters) - State energy company Sonatrach and Baker Hughes, part of GE (BHGE), will set up a joint venture and build an oil equipment plant in Algeria at a cost of $45 million under a deal signed on Thursday, Sonatrach said.

Idle oil equipment is seen in a Baker Hughes yard in Williston, North Dakota April 30, 2016. Picture taken April 30, 2016. REUTERS/Andrew Cullen/File Photo

Algeria’s Sonatrach will hold a 51 percent stake and BHGE the remaining 49 percent in the project which will be based in Azrew in western Algeria, it said in a statement.

The site is due to start production in December 2019.

“With Sonatrach, we are able to establish a strong manufacturing hub that will increase local capacity and boost exports,” BHGE CEO Lorenzo Simonelli said in the statement.

Reporting by Hamid Ould Ahmed; editing by Ulf Laessing and Jason Neely

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