Algerian state energy giant Sonatrach has entered into a memorandum of understanding with China’s Antoon Oilfield Services Group. The agreement aims to evaluate cooperation opportunities in the oil and gas sectors, focusing on resource development and the exchange of technical expertise. According to an official statement from Sonatrach, the signing ceremony took place on Saturday, August 29, 2026, during a visit by Sonatrach Chairman and CEO Nouredine Daoudi to China, accompanied by a high-level delegation.
Focus on Unconventional Resources and Technology Transfer
The memorandum outlines a strategic effort to assess prospects for developing unconventional resources and marginal reservoirs. A key component of the partnership involves implementing enhanced oil recovery solutions to improve operational efficiency. Furthermore, the agreement seeks to facilitate the local manufacturing of completion tools and equipment, thereby supporting natural gas projects and promoting the localization of oil and gas services.
Both parties intend to deepen their collaboration through the exchange of technical knowledge and the transfer of technology, particularly in the field of unconventional resources. Antoon Oilfield Services Group, listed on the Hong Kong Stock Exchange, is recognized as a technological service provider for oil fields. The company is described in the statement as demonstrating rapid, stable growth, competitiveness, and dynamism through its adoption of modern technologies.
Sonatrach emphasizes that this partnership extends beyond specific project execution. It includes a broader mandate for human resource and technical capacity building within the hydrocarbon sector. The collaboration will focus on identifying joint projects that utilize technologies capable of exploiting unconventional resources and enhancing production from fields with limited economic viability.
Parallel Agreements and Regional Expansion
This development follows another significant agreement signed the previous day, Friday, August 28, 2026. On that occasion, Sonatrach and China National Petroleum Corporation (CNPC) subsidiary Sinopec signed a separate memorandum of understanding. That pact explores cooperation in traditional and non-traditional hydrocarbon projects, complex reservoir development, petrochemical industries, and helium production. It also covers petroleum engineering, renewable energies, and new related technologies.
The Sinopec agreement builds upon a framework established in 2024, which identified mutual interests and tangible operations. Both entities aim to expand their partnership across various stages of the hydrocarbon value chain. These signings occur against the backdrop of Sonatrach’s broader strategy to strengthen direct ties with African oil and gas companies, particularly in the Sahel region.
In a parallel move reinforcing regional energy ties, Sonatrach began exporting Jet A1 aviation fuel to Niger on Friday, August 14, 2026. The deliveries originate from the Adrar refinery and are executed under a sales contract with Niger’s SONIDEP. This initiative aligns with directives from Algerian authorities to enhance commercial and economic relations with Niger. Concurrently, Sonatrach has commenced the joint marketing of Nigerian Milke crude oil with SONIDEP, marking a new phase in bilateral trade and expanding Algeria’s presence in regional fuel markets.
This story was produced in the newsroom from the disclosed sources named above.
