Algerian state energy company Sonatrach has awarded US oil service firms Schlumberger and National Oilwell Varco (NOV) contracts for managing well operations
According to Reuters, Schlumberger was awarded a US$25mn contract for technical assistance and NOV won a US$45mn contract after being pre-selected in 2015 by Sonatrach’s drilling division.
Reports have suggested that Algeria is trying to draw more foreign investors to help bolster oil and gas production. This has stagnated for years because of reliance on mature fields and a lack of investment in new production.
American companies are competing in the estimated US$2bn Algerian energy service market with Chinese companies Sinopec and CNPC whose service affiliates have become more active in the North African country in recent years.
With oil prices down, Algeria’s government has suspended some infrastructure projects and cut budget spending, but Sonatrach has said that it will continue with its ambitious investment plan to increase oil and gas production.
