6 May 2020 15:27

Sonatrach, Lukoil sign memorandum of understanding

ALGIERS. May 6 (Interfax) - Algeria's Sonatrach Group and Russia's Lukoil have signed a memorandum of understanding to initiate discussions and identify opportunities joint hydrocarbon exploration and production projects in Algeria and beyond, Sonatrach said in a press release.

Sonatrach has reached similar understandings with other foreign energy companies, for example ExxonMobil, as it seeks to reverse the decline in output and exports of recent years caused by a lack of foreign investment and growing domestic demand.

The Algerian government last year approved new energy legislation offering attractive contract terms to foreign investors, including tax incentives.