Omani fund to invest $300m in Algeria’s economy

Oman and Algeria have signed an agreement to create a joint venture oilfield services company in the North African country, according to local media.

The agreement was signed on Monday. 

Algeria’s state oil operator, Sonatrach, signed the agreement with Abraj Energy Services, a wholly owned subsidiary of Oman’s global integrated energy group OQ, during sultan of Oman Haitham bin Tarik’s first visit to Algeria.

OQ, formerly known as Oman Oil Company, is a wholly owned subsidiary of the government of Oman through the Oman Investment Authority.

The agency said the joint venture would focus on the Algerian market in the first phase before expanding to regional and global markets.

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During the sultan’s visit, the Oman Investment Authority and Algeria’s finance ministry signed another agreement to set up an investment fund with capital of RO115 million ($299 million).

Algeria has been negotiating with several foreign companies, including from Saudi Arabia, to develop its ageing oil and gas fields. The country controls around 13 billion barrels of proven oil deposits and 4.5 trillion cubic metres of gas.