Chevron and Sonatrach Sign MoU to Jointly Pursue Algerian Opportunities
International major Chevron Corp. and Algerian state-owned Sonatrach SpA have signed a Memorandum of Understanding (MoU) to initiate joint discussions on pursuing opportunities to explore, develop and exploit hydrocarbons in Algeria. The MoU follows the promulgation of Algeria’s new hydrocarbons law, and will help the companies develop their existing partnership, while facilitating technology transfer in various segments of the oil & gas industry.
Algeria’s new hydrocarbons law came into effect in late 2019 and aims at stimulating foreign investment in the country’s oil & gas sector. The new legislation reduces taxes and local content requirements for Sonatrach’s international partners, while preserving the state-owned company’s 51% equity position in all upstream oil & gas contracts in the country.