convention avec l’omanaise Abraj en vue de créer une société mixte de services pétroliers
Sonatrach and Abraj Energy Services Collaborate to Form Joint Venture in Oil Services
On Monday, in Algiers, the Algerian oil company Sonatrach and the Omani firm Abraj Energy Services signed a "Term Sheet" (letter of intent), aimed at establishing a mixed company focused on oil services. This significant event took place at the presidency’s headquarters, during a ceremony attended by Algerian President Abdelmadjid Tebboune and Sultan Haitham bin Tariq of Oman, who was on an official visit to Algeria.
The signing follows a memorandum of understanding (MoU) signed by both companies on April 24, 2024. This new document represents a culmination of the collaborative efforts from a joint working group formed by Sonatrach and Abraj, designed to explore partnership opportunities and facilitate the potential creation of a joint venture.
The primary purpose of this Term Sheet is to outline the essential technical, legal, economic, and commercial conditions for assessing the feasibility of creating an integrated oil services company in Algeria. This entity will focus on activities such as drilling, workovers, well services, and integrated project management, prioritizing the Algerian market while also eyeing international expansion.
This agreement also highlights the commitment of both companies to deepen their strategic partnership and enhance cooperation at a level that reflects the desire of both nations to strengthen bilateral relations and promote exchanges in vital sectors, thereby contributing to sustainable development.
Abraj Energy Services is one of the leading companies in Oman’s oil industry, prominently engaged in oil and gas services.
The collaboration between Sonatrach and Abraj signifies a major step in leveraging opportunities in Algeria’s burgeoning oil sector. Both companies anticipate that this partnership will not only foster economic growth within Algeria but also create pathways for shared knowledge and technology transfer, crucial for the advancement of oil service capabilities in the region.
Through this venture, the involved parties seek to utilize modern technologies and best practices to enhance oil extraction and service processes, which could lead to improved operational efficiency and productivity.
By establishing this partnership, both Sonatrach and Abraj aim to align their strategic objectives with the evolving dynamics of the global energy market, ensuring that they remain competitive and innovative in an ever-changing environment.
This collaboration reflects a broader trend in the oil and gas industry, where partnerships between companies from different countries and regions are increasingly common. Such alliances are often key to overcoming challenges associated with resource management, environmental concerns, and regulatory frameworks, particularly in developing markets.
In conclusion, the signing of this Term Sheet marks a pivotal moment in the relationship between Algeria and Oman, emblematic of their determination to work together in vital sectors like the oil industry. With focus areas that include integrated services and international market outreach, the partnership promises significant contributions to the economic landscapes of both nations, fostering partnerships that go beyond immediate business interests to build long-lasting, mutually beneficial relationships.
As the oil landscape continues to evolve, initiatives like this one will be crucial for countries aiming to optimize their resource utilization and enhance their service capabilities on both domestic and international fronts. The cooperative spirit exhibited by Sonatrach and Abraj Energy Services serves as a model for future partnerships in the oil sector, emphasizing the importance of collaboration for sustainable growth and innovation in the industry.
