Algeria’s state-owned energy company Sonatrach announced on Monday the signing of a Heads of Agreement (HOA) with Oman’s Abraj Energy Services as a step toward forming a joint venture to provide integrated oilfield services.

In a statement, Sonatrach said the agreement was signed by its CEO, Rachid Hachichi, and Abraj Energy Services’ CEO, Saif Al-Hamhami, under the patronage of Algerian President Abdelmadjid Tebboune and Oman’s Sultan Haitham bin Tarik, during the latter’s official visit to Algeria.

The document formalizes the Memorandum of Understanding (MoU) signed between the two companies on April 24, 2024. The joint working group established by Sonatrach and Abraj identified potential partnership opportunities, leading to the decision to explore the creation of a joint venture.

According to the statement, the agreement outlines the key technical, legal, economic, and commercial terms for assessing the feasibility of establishing a joint venture. The proposed company would provide integrated oilfield services in Algeria, including onshore drilling, well services, and integrated project management, with a focus on the Algerian market before expanding internationally.

The statement emphasized that this step reflects the two companies’ commitment to strengthening bilateral relations and elevating their strategic partnership, aligning with both nations’ desire to enhance cooperation in vital sectors and contribute to sustainable development.

Abraj Energy Services is one of Oman’s leading companies in the oil and gas services sector.