ALGIERS, Feb 17 (NNN-APS) -- Algerian Industry and Mining Minister Abdessalem Bouchouareb says the State-owned oil and gas company Sonatrach Group and the Saudi Arabia's SABIC have eached agreement to forge a partnership in the petrochemical sector.
A delegation from SABIC (Saudi Arabia Basic Industries Corporation) should arrive to Algiers next week for the signing of a memorandum of understanding (MoU) and start the elaboration of an action plan over the next six months, the Minister said here Thursday.
Sonatrach had received a favourable response to its request for the start of the study of the project planned between the two parties, he added.
He described the agreement reached as a strong sign for the development of economic relations between the two countries, which the two sides have called to be raised to the level of their political relations.
The MoU will focuses on three projects in the petrochemical sector to open up promising prospects in terms of production, exchange of expertise, knowledge, and long-term technologies, he added.
Meanwhile, Prime Minister Abdelmalek Sellal said Thursday that a Sonatrach subsidiary based in London to market gas to European countries was motivated by the important profit margin, the supply deficit and imports capacity.
In his reply to a question raised at the Council of the Nation (upper house of Parliament), read on his behalf by Minister for Relations with Parliament Ghania Eddalia, he said the Sonatrach subsidiary was set up in line with the national strategy for marketing of oil and gas abroad.
The London-based entity is mainly intended for marketing and shipping of hydrocarbons, Sellal said in reply to a question on the purpose for the creation of Sonatrach's subsidiary in UK's capital. "It purchases oil products for Sonatrach to market them worldwide."
The subsidiary has a fleet of two giant tanks, with a capacity of 84,000 cubic metres each, and three other smaller tankers, the Adrar, Ghoud Enouss and Hassi Messaoud, with an average capacity reaching 59,000 m3 each.
It also has a crude oil tanker with a capacity of two million barrels, according to the prime minister.