The logo of the state energy company Sonatrach is pictured at the headquarters in Algiers, Algeria November 20, 2019.
On Tuesday, February 25, 2025, Algeria’s state-owned oil and gas company, Sonatrach, entered into a hydrocarbon development and exploration contract with China’s Sinopec. The agreement, valued at $850 million, focuses on projects within the North African nation, as announced by Sonatrach. This deal marks a significant collaboration aimed at enhancing Algeria’s energy sector.
During the signing ceremony, Sonatrach CEO Rachid Hachichi revealed that the company is engaging with multiple international firms for similar hydrocarbon contracts. According to the Algerian state news agency, these negotiations involve seven companies, including Sinopec, Italy’s Eni, France’s Total, U.S.-based Chevron and ExxonMobil, and a Swedish firm. Hachichi stated: “The company is currently negotiating with seven international companies for hydrocarbon contracts,” highlighting the broad scope of Sonatrach’s outreach.
The contract with Sinopec centers on exploration and development activities, though specific details about the project locations or timelines were not disclosed in the announcement. Algeria, a key player in the global energy market, relies heavily on its hydrocarbon resources, and this partnership reflects efforts to bolster production and exploration capabilities through international cooperation.
Sonatrach’s ongoing discussions with other major energy firms suggest a strategic push to attract foreign investment and expertise. The involvement of companies from diverse regions, such as Europe, North America, and Asia, underscores Algeria’s intent to expand its energy partnerships. The negotiations with Eni, Total, Chevron, ExxonMobil, and the unnamed Swedish company are part of this broader initiative, though no additional contracts were finalized as of Tuesday’s announcement.
The $850 million agreement with Sinopec is expected to contribute to Algeria’s energy infrastructure and resource development. While the Algerian state news agency provided the details of the signing, further specifics about the project’s scope or expected outcomes remain limited. The deal aligns with Algeria’s economic goals of leveraging its natural resources to support national growth.
This collaboration between Sonatrach and Sinopec builds on existing international ties in the energy sector, fostering a mutual interest in hydrocarbon exploration. As negotiations with the other six companies progress, Sonatrach aims to secure additional partnerships that could further strengthen Algeria’s position in the global energy landscape. The announcement reflects a practical approach to resource management, focusing on sustainable development through foreign collaboration.
