GE and Sonatrach enter joint venture

Overview:

• US conglomerate General Electric (GE) has entered into a memorandum of understanding (MOU) with the Algerian state-owned oil company Sonatrach to create a joint company for the manufacturing of equipment used in the oil and gas industry.
• Sonatrach will have a 51% stake in the company and GE will hold the remaining 49% stake.
• The company will manufacture and develop drilling and production equipment, equipment for measurement and supervision, and provision for services and training relating to oil fields.
• The MOU was signed on 29 January 2015 and has been extended.
• The parties are now in the implementation phase and are negotiating the various agreements to be entered into such as the shareholders’ agreement, licence agreements, and technical assistance agreement.

Adam Majeed - Regional editor