The Strategist

Algeria and China agree to share oil production

05/30/2022 - 08:27

APS: Sonatrach and SOOGL agree to split $490 million in oil production.

The official Algerian news agency APS announced on Twitter on Saturday that Algeria's Sonatrach oil and gas group and Chinese oil and gas business Sinopec Oil & Gas Limited (SOOGL) had inked a $490 million oil production sharing agreement in Algeria's southeast section.

The 25-year agreement calls for a "project expected to produce roughly 95 million barrels of crude oil" at the Zarzaitine location in Illizi province, according to the agency.

Sonatrach Group announced a $40 billion investment in oil exploration, production, and refining, as well as gas exploration and production, from 2022 to 2026, in response to a sharp drop in oil and gas exports in the previous two years due to mismanagement and underinvestment in the country's oil and gas industry.