Sinopec and Algerian national petroleum company signed a memorandum of understanding.

On August 28, Hou Qijun, Chairman of China Petrochemical Corporation, met with a delegation led by Mohamed Arkab, Chairman and CEO of Sonatrach, the Algerian national oil company, at the group headquarters. The two sides conducted in-depth exchanges on multi-dimensional cooperation in the energy field, and signed a strategic cooperation memorandum of understanding after the meeting.

High-level meetings connect multiple tracks and build long-term cooperation framework

During the talks, the two sides focused on key directions of the oil and gas industry and fully exchanged views, clearly will promote cooperation in the exploration and development of conventional and unconventional oil and gas resources, and expand business cooperation space such as oil and gas engineering technical services and oil and gas equipment manufacturing.

Through the signed strategic cooperation memorandum of understanding, the two sides have established a strategic cooperation framework, laying an institutional foundation for subsequent new project excavation, project implementation and technical exchanges, and promoting bilateral energy cooperation to a deeper level.

Sonatrach: A leading full-industry-chain energy giant in North Africa

Sonatrach, the Algerian national oil company, was established in 1963. It is a state-owned oil and gas enterprise at the national level of Algeria, with its headquarters located in the Hydra district of Algiers, the capital, and is also a leading oil and gas operator in Africa.

The company's business covers the entire industrial chain of oil and gas exploration, extraction, storage and transportation, refining and chemical processing, and product sales. It holds high-quality oil and gas resources in North Africa, is an important participant in the global oil and gas market, and is also a core partner of Chinese energy enterprises in the North African market.

China-Algeria energy cooperation blossoms in multiple areas, multiple physical projects have been implemented

This memorandum is not the first business cooperation between the two sides. Since 2025, Sonatrach has finalized physical project contracts with a number of domestic energy enterprises.

Among them, signed the Arzew refinery expansion contract with China Petrochemical Corporation, helping local refinery units upgrade and improve the refined oil processing capacity;

signed a natural gas exploration and development contract with China Oilfield Services Limited, to increase the development of local natural gas resources;

Also reached an oilfield service contract with Tongyuan Petroleum, introducing domestic oilfield engineering technical support.

A series of projects cover refining and chemical transformation, oil and gas exploration, and oilfield technical services, showing the diversified business layout of Chinese energy enterprises in the North African market. The implementation of the strategic cooperation memorandum of understanding is expected to further release cooperation potential on the basis of existing projects, improve China's overseas oil and gas supply chain layout, and achieve mutual benefit and win-win results in resources, technology and markets.