Algeria: Sonatrach, Sinopec Sign Hydrocarbon Deal

Algeria’s national oil company Sonatrach has signed a Memorandum of Understanding with China’s Sinopec, reinforcing their partnership in the hydrocarbon sector and opening the door to new joint exploration and production opportunities, specifically in the Gourara and Berkine basins. 

The deal reflects what Sonatrach describes as a shared ambition to broaden long-standing collaboration between the two national companies, with a focus on technical cooperation and expanded investment in upstream development. Sinopec has operated in Algeria since 2002, having partnered with Sonatrach on the Zarzaïtine field, one of the country’s key oil production sites.

This renewed cooperation underscores Algeria’s position as a strategic player in the Mediterranean energy market, particularly as it continues to expand gas supply to Europe and deepen partnerships with international companies.

No financial terms have been disclosed at this stage, but the agreement builds on decades of collaboration and signals continued confidence in Algeria’s resource base and regulatory stability.