Sonatrach and Abraj Energy Services Sign Term Sheet for Joint Oil Services Venture During Sultan of Oman’s Visit to Algeria

During the Sultan of Oman’s visit to Algeria, Sonatrach and Abraj Energy Services signed a term sheet to establish a joint venture in the oil services sector, with a focus on drilling, well services, and project management.

On Monday, the two companies signed a term sheet at the Presidency of the Republic, following a prior memorandum of understanding from April 2024. The agreement outlines technical, legal, and commercial conditions for creating a joint company, prioritizing the Algerian market and expanding internationally. This step concludes months of collaboration between the two firms, who seek to deepen their strategic partnership. Sonatrach’s CEO, Rachid Hachichin, and Abraj Energy Services’ CEO, Saif Al Hamhami, signed the document under the patronage of Algerian President Abdelmadjid Tebboune and Sultan Haitham Bin Tariq.

The collaboration aims to bolster Algeria's oil service capabilities in areas like drilling and project management, and to extend the reach of these services beyond Algeria. Abraj Energy Services, founded in 2006, is one of Oman’s largest energy firms and a leader in drilling operations in the Gulf Cooperation Council (GCC).

The signing symbolizes a significant step in enhancing bilateral ties between Algeria and Oman, reflecting both nations’ commitment to sustainable development and strategic cooperation in the oil sector.