Deepening Algeria’s Oil and Gas Sector From Above the Ground
Boosting Algeria’s industrial base is a key pillar of the country’s economic growth program, and a new oilfield equipment manufacturing company from Baker Hughes, a GE company, (BHGE) and Sonatrach will help deepen the country’s production capabilities.
The company, owned 51% by Sonatrach, Algeria’s national oil and gas company, and 49% by BHGE, will help meet growing demand for oilfield equipment by manufacturing, assembling, and maintaining to the highest global standards certain specialized equipment, including wellheads, “X-Mas Trees” and valves.
Based in Oran, the new site will draw on BHGE’s decades of experience in oilfield equipment manufacturing and supports Sonatrach’s strategy to energize the oil and gas sector, and improve national economic competitiveness through a stronger manufacturing base and industrial exports.
Although primarily serving the domestic oil and gas sector, the new company has the potential for exporting its products.
In addition to growing the domestic manufacturing sector, the new company will also have a positive impact on the Algerian workforce. Not only will the company help create many direct jobs, but in strengthening the local supply chain, it will foster the creation of many indirect jobs.
As well, the company will have the capacity to provide specialized training for more than 200 engineers.
“The combined effort underscores our commitment to help fuel the economy by improving economic competitiveness, developing skilled talent, and delivering the highest manufacturing standards with plans for future exports,” said Rami Qasem, President and CEO of BHGE Middle East, North Africa, Turkey and India.
This is not the first collaboration between GE and Sonatrach. In 1993, GE, in partnership with Sonatrach and Algerian national utility Sonelgaz, created ALGESCO, a major turbomachinery center. A significant expansion of this structure was completed in 2010 in Boufarik, making ALGESCO one of the largest GE turbine engine maintenance centers in the world. It employs more than 200 people, while its training center has trained over 1,600 engineers since 2013.
More recently, in 2016, Sonatrach and BHGE launched the first Algerian edition of the “GE Oil & Gas University” program, an initiative aimed at strengthening the professional, technical and leadership skills of 25 young Sonatrach employees.