Baker Hughes, Sonatrach To Construct Oil Equipment Plant
Zacks Investment Research | Nov 12, 2017 08:26PM ET
Baker Hughes, part of GE (NYSE:BHGE) , and Algerian State energy company, Sonatrach, have proposed to set up a joint venture (JV).
Per the deal, the companies will construct an oil equipment plant in Algeria at an estimated cost of $45 million. Manufacturing, assembly and maintenance for various types of oilfield equipment will be provided by the JV. This will result in the formation of an important base, which will meet Algeria’s rising domestic needs and fulfill requirements for exports.
The project, to be based in Azrew in western Algeria, is expected to come online in December 2019. Sonatrach will hold a 51% stake in the project, while the remaining 49% will be owned by BHGE.
About the Companies
Being the world’s first and only company to provide integrated oilfield products, services and digital solutions, Baker Hughes strives to boost efficiency across the oil and gas value chain. The company operates in over 120 countries.
An Algerian government-owned company, Sonatrach was created with the intent to discover hydrocarbon resources. It enjoys some concessions in Libya, Mauritania, Peru, Yemen and Venezuela. The company is mainly engaged in all aspects of production, including exploration, extraction, transportation and refining. Recently, Sonatrach diversified its operations into petrochemistry and the desalination of seawater.
Price Movement
The company’s shares have lost 3.8% as against the Original post
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