||Algeria : SONATRACH and BHGE set up an industrial joint venture to meet the needs of oil and gas activities in equipment and services
||SONATRACH and Baker Hughes, GE Company (BHGE), today announced the formation of a joint venture for the local production of equipment for the oil and gas industry and the localization of services associated, this industrial complex of 20 000 M will be located in Oran. The signing took place at the headquarters of Sonatrach in Algiers in the presence of Mr. Mustapha GUITOUNI, Minister of Energy, Mr. President and CEO of Sonatrach, Mr. Ould Abdelmoumen KADDOUR, BHGE President and CEO, Lorenzo SIMONELLI and CEO of BHGE Middle East, North Africa and Turkey, Mr. Rami QASEM and His Excellency the Italian Ambassador in Algeria Pasquale FERRARA, and representatives of the Embassy of the United United States of America in Algeria.
This joint venture, 51% owned by SONATRACH and 49% owned by BHGE, highlights a major commitment to providing world-class manufacturing capabilities in line with the highest international standards. The project builds on BHGE's extensive experience in the manufacturing of oilfield equipment (OEM) and leverages the global and local expertise of the company to provide production solutions from the facility, which will be operational in December 2019.
With a joint investment of US $ 45 million, the plant will focus on the manufacture, assembly and maintenance of various types of pressure control equipment such as wellheads, X-Mas Trees and valves. thus establishing an important basis for meeting the growing needs upstream of Algeria with the prospect of exporting to the regional market.
The company will also deliver training and skills development programs to more than 200 engineers in the first 7 years of operation. In addition to direct job creation in Arzew, this project will develop and strengthen the local supply chain, which will lead to the creation of a substantial number of indirect jobs, as well as the strengthening of the oil and gas ecosystem. through the development of SME fabric.
Mr. Abdelmoumen OULD KADDOUR, CEO of SONATRACH, said on the sidelines of the initiative: " The creation of this joint venture is a breakthrough in the integration chain of SONATRACH, in order to better control costs and deadlines. to ensure a 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 come to consolidate the historical relationship between SONATRACH and BHGE, and boost it to a partnership of excellence."
Mr. Lorenzo SIMONELLI, CEO of BHGE, added: "With SONATRACH, we are able to establish a strong manufacturing hub that will increase local capacity and boost exports. This partnership underscores our commitment to contribute to improving economic competitiveness, developing skilled talent and applying the highest manufacturing standards. The Joint Venture will not only revitalize Algeria's local supply chain, but also position the country as a key manufacturer in industrial equipment."
Mr. Smail BOUDERBA, Vice President of GeoMarket North Africa, BHGE, said: " Through the provision of high-end oil products and services, BHGE is reaffirming its goal of increasing the productivity of its customers across the board. of the sector value chain. We are honored to work with SONATRACH and play an important role in supporting the country's ambition to be one of the leading upstream manufacturers in North Africa."
Present in Algeria for more than 40 years, BHGE participated in several major projects, including its partnership with Sonatrach and Sonelgaz for creating ALGESCO, an important center of Turbomachinery Maintenance and Repair in Boufarik, serving customers of Upstream, Downstream and Oil Transportation. BHGE also launched the first edition of the global "Oil & Gas University" program in the country, an initiative that has trained young professionals with technical and leadership skills.
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