Algeria’s Sonatrach awards $100 mil pipe deal to foreign firms

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ALGIERS (Reuters) – Algeria’s state energy firm Sonatrach has awarded a $100 million contract to supply oil and gas drilling tubes to five foreign firms as part of its drive to increase production, a document seen by Reuters on Tuesday showed.

The companies named in the Sonatrach document are Germany’s CCC Machinery, Dutch firm Van Leeuwen, Vallourec Tubes France, Kurvers Piping France, and High Sealed&Coupled from China.

OPEC member Algeria, which has been hurt by a 70 percent fall in oil prices since mid-2014, is campaigning for more foreign investment to increase oil and gas production to sustain exports and meet growing local demand.

But recent bidding rounds have failed to attract much interest from foreign oil producers.

Sonatrach also said on Tuesday it had made a new oil find with Thailand’s PTTEP and China’s CNOOC following successful drilling in the Hassi Bir Rekaiz area in Algeria.

“This represents 20,000 barrels per day,” a Sonatrach source told Reuters.

Sonatrach holds a 51 percent stake in the project, with the other two companies owning 24.5 percent each.

The state energy company is focusing on developing areas around existing fields and hiking production at its mature fields. It will also invest $3.2 billion over four years to increase pipeline capacity as natural gas output rises from new and existing fields.


(By Lamine Chikhi. Editing by Patrick Markey and Susan Thomas)

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