BY: Dr. Hana Saada
Two Memoranda of Understanding Signed to Enhance Exploration, Production, and Technological Collaboration
Algiers, Algeria | April 16th, 2025 — State-owned oil giant Sonatrach and U.S.-based Occidental Petroleum have signed two Memoranda of Understanding (MoUs) aimed at expanding their cooperation in hydrocarbon exploration and production. The agreements were formalized on April 14, 2025, during the US-Algeria Energy Forum held in Houston, Texas.
The first MoU establishes a framework for discussions on developing carbonate reservoirs, focusing on assessing cooperation opportunities in this area. The second MoU pertains to the implementation of Enhanced Oil Recovery (EOR) techniques, with the objective of optimizing production and improving final recovery factors. These initiatives are expected to bolster Algeria’s hydrocarbon output and enhance the efficiency of its oil recovery processes.
This collaboration builds upon the existing partnership between Sonatrach and Occidental Petroleum. Along with two other partners, they are jointly developing the contractual area in Berkine under a hydrocarbon contract signed on July 19, 2022. The new agreements signify a deepening of ties and a shared commitment to advancing Algeria’s energy sector.
The signing of the MoUs coincided with the participation of Sonatrach’s CEO, Rachid Hachichi, in the US-Algeria Energy Forum 2025. The forum, organized by the US-Algeria Business Council and the American Algerian Chamber of Commerce, with support from the Algerian Embassy in Washington, D.C., brought together key stakeholders from both countries to discuss energy cooperation.
During his address at the forum, Hachichi emphasized Sonatrach’s dedication to exploring new investment opportunities, particularly in hydrocarbons, renewable energy, hydrogen, energy efficiency, and reducing carbon emissions. He highlighted the company’s commitment to maintaining its status as a reliable energy supplier, leveraging its modern infrastructure and significant achievements in exploration.
Hachichi also underscored the advantages offered by Algeria’s hydrocarbon law to investors, as well as the country’s substantial resources in both traditional and renewable energy sectors. He noted that these factors make Algeria an attractive destination for energy investments and partnerships.
The forum witnessed the presence of high-ranking Algerian officials, including Mourad Beldjahem, President of the National Agency for the Valorization of Hydrocarbon Resources (ALNAFT), and Amine Remini, Director General of Hydrocarbons at the Ministry of Energy and Mines. Their participation further signified Algeria’s commitment to fostering international collaborations in the energy domain.
